Most contracts, whether between voters and politicians or between house owners and contractors, are incomplete. "More law," it typically is assumed, increases the likelihood of contract performance by increasing the probability of enforcement and/or the cost of breach. This paper studies a...

This paper examines whether trust is an investment decision under uncertainty, based on the expectation of trustworthiness, and whether trustworthiness is reciprocity, conditional on one's counterpart's behavior. In experiments run in Russia, South Africa and the United States, we find that only...