Price dispersion and the stability of trade*
利用挪威出口数据，发现贸易关系破裂概率随关系价格偏离参考价格而上升，且破裂风险服从齐普夫定律，并构建搜索模型解释这些现象。
Abstract Research on trade relationships has documented a high rate of relationship breakup and churning. We use data on Norwegian exports to document two stylized facts about the stability of trade relationships. First, the probability of relationship breakup increases in the deviation of the relationship‐specific price from a reference price. Second, relationship hazards follow Zipf's law. We propose a search model with limited information and search frictions to explain these facts. Reference prices provide information on outside trade options that inform optimal breakups, leading to the first stylized fact. Strong heterogeneity in breakup frictions across relationships can explain the Zipf's law hazards.