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Who Prices Locally? Survey Evidence of Swiss Exporters

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Author Info
Fischer, Andreas () (Swiss National Bank)
Lutz, Matthias () (Institute of Economics, University of St. Gallen)
Waelti, Manuel () (Swiss National Bank)

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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.

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Publisher Info
Paper provided by Swiss National Bank in its series Working Papers with number 2007-16.

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Length: 19 pages
Date of creation: 30 Apr 2007
Date of revision:
Handle: RePEc:ris:snbwpa:2007_016

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Related research
Keywords: Pricing to markets; local currency pricing; firm size.;

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Find related papers by JEL classification:
F10 - International Economics - - Trade - - - General
F14 - International Economics - - Trade - - - Country and Industry Studies of Trade

References listed on IDEAS
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