Although Atwood focuses on individuals and the tangible, often startling outcomes of their actions, as well as the suffering inflicted by dominant social stereotypes and self-centered values, her primary focus is on the craft of writing. In "Happy Endings," the characters are essentially exaggerated portrayals. The development of characters takes a backseat to Atwood's exploration of the impact of popular fiction.

Despite this, there are several distinct characters, particularly the two main ones, John and Mary. They appear in four out of the six vignettes, adapting to different scenarios; they share the same names but not the same traits. In story "A," they fall in love, marry, start a family, and live happily ever after. Atwood offers this narrative for readers who "want a happy ending." John and Mary's careers, intimate activities, and pastimes are all described as "stimulating and challenging." Through this intentional, monotonous repetition, Atwood seems to suggest that their tale is anything but engaging and exciting.

In story "B," John is depicted as a single man who uses Mary as a mere object twice a week: "Her friends tell her John is a rat, a pig, a dog," yet she remains naive and reliant, disagreeing with them. She believes the true John is hidden inside and "will emerge like a butterfly from a cocoon, a Jack from a box, a pit from a prune, if the first John is only squeezed enough." This section, although a forewarning of doom for Mary, showcases Atwood's humorous side, which she has lamented is often overlooked. Journalist Gary Soulsman, reporting on her April 1985 visit to Wilmington, Delaware, for the News Journal, observed that she was tired of being categorized by "journalistic slogans" that "overlook the humor in her work."

Story "B" also introduces another character. Madge is "the other woman" for whom John leaves Mary, but she is only briefly mentioned in this vignette. Similarly, in story "C," Madge has a minor role as the spouse of the cheating John. However, she becomes a central figure in stories "D" and "E." In both, she is married to "an understanding man named Fred," who dies from heart failure in "E." Neither Fred nor Madge are fully developed characters; they fulfill their predictable roles in clichéd narratives. In story "E," for instance, Atwood demonstrates how a writer could simply swap words to make Madge the one who dies. Both versions are equally romanticized and sentimental.

In story "F," Atwood proposes adding excitement to the previous John-and-Mary stories by turning "John into a revolutionary and Mary into a counterespionage agent," potentially creating "a lustful brawling saga of passionate involvement." However, she notes that the core of the story will remain the same as in "A."

The only other character is James, "who has a motorcycle and a fabulous record collection." He is introduced in story "C" as an alternative love interest for Mary. James smokes marijuana with her, they end up in bed, and "everything becomes very underwater," which is amusing. This is especially funny given Atwood's other works, such as her 1972 novel Surfacing, where water often symbolizes purification and rejuvenation. However, in "Happy Endings," she employs this concept for comedic effect, making it an effective inside joke while also being inherently humorous.

Fred

Fred is Madge's second husband. In one storyline, he survives a tidal wave, but in another, he does not.

James

James is featured in version C as Mary's lover. At just twenty-two, James isn't ready to settle down. He enjoys the freedom of riding his motorcycle. James meets his end when John finds him in bed with Mary and...