ABSTRACT
Uncertainty is an important fact in life. The interaction between humans forms a significant source of uncertainty. This chapter discusses different ways this form of uncertainty is reduced or accepted. Trust, both particularized trust as well as generalized trust, can reduce uncertainty and thus enhance human interactions. The degree to which uncertainty is accepted differs between countries. The chapter discusses empirical research which relates the degree of Uncertainty Avoidance to the formal institutions of the economy. The consequences for expectation formation in countries with a high and a low degree of Uncertainty Avoidance respectively are drawn. The chapter ends with some suggestions for future research in the field of uncertainty and expectation formation.
