Template-type: ReDIF-Paper 1.0
Author-Name: Andreas M. Fischer
Author-Name-First: Andreas M.
Author-Name-Last: Fischer
Author-Person: pfi23
Author-Name: Prof. Dr. Matthias Lutz
Author-Name-First: Matthias
Author-Name-Last: Lutz
Author-Person: plu20
Author-Name: Dr. Manuel Wälti
Author-Name-First: Manuel
Author-Name-Last: Wälti
Title: Who Prices Locally? Survey Evidence of Swiss Exporters
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.
Length: 19 pages
Creation-Date: 2007
Contact-Email: forschung@snb.ch
File-URL: https://www.snb.ch/en/publications/research/working-papers/2007/working_paper_2007_16
File-Format: text/html
Number: 2007-16
Classification-JEL: F10, F14
Keywords: Pricing to markets, local currency pricing, firm size
Handle: RePEc:snb:snbwpa:2007-16