Who Prices Locally? Survey Evidence of Swiss Exporters

Andreas Fischer (), Matthias Lutz () and Manuel Waelti ()
Additional contact information
Manuel Waelti: Swiss National Bank, Postal: Postfach 8022 Zurich Switzerland, http://www.snb.ch

No 2007-16, Working Papers from Swiss National Bank

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 dif- ferent 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: Pricing to markets; local currency pricing; firm size. (search for similar items in EconPapers)
JEL-codes: F10 F14 (search for similar items in EconPapers)
Date: Written 2007-04-30

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Related works:
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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