How should we interpret the World Values Survey (WVS) trust question? We conduct an experiment in India, a low trust … country, to correlate the WVS trust question with trust decisions in an incentivized Trust Game. Evidence supports findings … from one strand of the fractured literature - the WVS trust question captures expectations about others' trustworthiness …

possible outcomes, a flexible contract allows for future adaptation but is associated with ex post haggling cost. By specifying … a single outcome, a rigid contract eliminates future disagreement but precludes beneficial adjustments to the occurring … less egalitarian ones. -- foreign direct investment ; cross-country cultural differences ; egalitarianism ; risk …