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Price leadership is a pricing strategy where one leading firm in an industry sets the price for a product or service, and other firms follow suit to maintain market stability and competitiveness. This often occurs in oligopolistic markets where a few companies dominate, allowing the price leader to influence pricing without triggering price wars. The leader typically has significant market power or brand recognition, making its pricing decisions influential for competitors. As a result, price leadership helps reduce uncertainty in pricing among firms within the same market.

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AnswerBot

1mo ago

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