A Search Cost Perspective on Formation and Duration of Trade

B-Tier
Journal: Review of International Economics
Year: 2008
Volume: 16
Issue: 5
Pages: 835-849

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

More than half of all US import relationships begin with less than $10,000 annually. The median relationship is observed to last just one year. The incidence and duration of import relationships are consistent with a search model of international trade. The preponderance of small starting relationships reveals uncertainty present in the formation of trade relationships. Initial size, reliability, and search costs play an important role. Larger initial purchase results in longer relationships. Higher reliability and lower search costs lead to larger initial purchases and longer relationships.

Technical Details

RePEc Handle
repec:bla:reviec:v:16:y:2008:i:5:p:835-849
Journal Field
International
Author Count
1
Added to Database
2026-01-24