Who Prices Locally? Survey Evidence of Swiss Exporters

Matthias Lutz, Andreas Fischer () and Wälti, Manuel

No 6442, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: Survey information on Swiss exporters is used to test the hypothesis that firm-specific factors, in particular firm size, are important determinants of pricing--to-market (PTM). The survey asked exporters whether they set different prices across markets and, if so, whether price segmentation occurred because of pricing conditions in the local market or other factors. The empirical analysis is based on a probit model that regresses a binary-choice variable of PTM on firm size and other control variables. The main empirical finding is that firm size and PTM are positively and significantly correlated. A further result is that while firms whose main export market is in the Euro area are less likely to engage in PTM, firm size plays a bigger role for them. These results are robust across different PTM classifications, regression specifications, export destinations, and industrial sectors.

Keywords: Firm size; Local currency pricing; Pricing to markets (search for similar items in EconPapers)
JEL-codes: F10 F14 (search for similar items in EconPapers)
Date: 2007-09
New Economics Papers: this item is included in nep-int and nep-mkt
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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Working Paper: Who Prices Locally? Survey Evidence of Swiss Exporters (2007)
Working Paper: Who Prices Locally? Survey Evidence of Swiss Exporters (2007)
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