Price Leader (Leadership)
Barron's Marketing Dictionary:
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price leader
Dominant competitor in a market whose price changes are matched by the rest of the competitors. The price leader usually has greater capital resources and economies of scale that enable it to risk sustaining lower prices than its competitors. The price leader may also have a distinct product advantage or enough advertising resources to sustain a higher price than its competitors. Price leadership is effective in the prevention of price wars and in reaching a consensus on pricing without collusion in violation of antitrust laws. If the price leader is not followed by the rest of the market, the leader is at risk of losing market share.
Barron's Business Dictionary:
Top
Price Leader (Leadership)
The firm in an oligopolistic industry whose output pricing decisions are most likely to be matched (up or down) by most other firms. The price leader establishes the pricing of products or services that becomes a pattern in the industry. This reduces competition and makes it less difficult for competitors to make pricing decisions.
| Price Index, Price Elasticity, Price Discrimination | |
| Price Level, Price Stabilization, Price Support |
