Business Dictionary
Price Leadership
A-B C-D E-G H-K L-N O-P R-S T-W
Price Leadership is established by company that is dominant in market. Prices and price changes are imposed by dominant firm, while other companies are accepting and following.
Usually, the price leader will tend to set the price to facilitate collusion, than the price leader will tend to establish the price high enough, so that least efficient company in the market can earn some return above the competitive level.
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