Who Prices Locally? Survey Evidence of Swiss Exporters

Survey information,on Swiss exporters,is used to test the hypothesis,that …rm-speci…c factors, in particular …rm 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 empiri- cal analysis is based on a probit model,that regresses a binary-choice variable of PTM on …rm size and other control variables. The main empirical …nding is that …rm size and PTM are positively and signi…cantly correlated. A fur- ther result is that while …rms whose,main export market,is in the Euro area are less likely to engage in PTM, …rm size plays a bigger role for them. These results are robust across di¤erent PTM classi…cations, regression speci…ca- tions, export destinations, and industrial sectors. JEL classi…cations: F10, F14