price leadership

price leadership
The setting of the price of a product by a dominant firm in an industry in the knowledge that competitors will follow this lead in order to avoid the high cost of a price war This practice is often found in oligopoly and has the effect of a cartel As the price leader is as anxious as the other members of the industry to achieve a stable market, it is in their interest to set the price at a sensible level; a price leader who fails to do so will soon be replaced as leader by another member of the group. Compare price ring

Big dictionary of business and management. 2014.

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  • price leadership — A price charged by the dominant producer that becomes the price adopted by all the other producers. Bloomberg Financial Dictionary * * * price leadership price leadership ➔ leadership * * * price leadership UK US noun [U] ► MARKETING the fact of… …   Financial and business terms

  • Price Leadership — When a firm that is the leader in its sector determines the price of goods or services. Price leadership can leave the leader s rivals with little choice but to follow its lead and match these prices if they are to hold onto their market share.… …   Investment dictionary

  • price leadership — noun : leadership by a dominant firm in the determination of prices in an industry with other firms following the pattern established by the leader * * * price leadership noun The establishment of the price of a commodity by the market leader • • …   Useful english dictionary

  • Price Leadership — ⇡ Preisführerschaft …   Lexikon der Economics

  • price leadership — / praɪs ˌli:dəʃɪp/ noun a situation where the producers model their prices on those of one leading producer …   Marketing dictionary in english

  • leadership — lead‧er‧ship [ˈliːdəʆɪp ǁ ər ] noun [uncountable] 1. the position of being the leader of a team, organization, country etc: • The company did well under the leadership of its founder, Haruo Suzuki. 2. the qualities needed in order to be a good… …   Financial and business terms

  • Price fixing — is an agreement between business competitors to sell the same product or service at the same price.In general, it is an agreement intended to ultimately push the price of a product as high as possible, leading to profits for all the sellers.… …   Wikipedia

  • price — The cost at which something is obtained. Something which one ordinarily accepts voluntarily in exchange for something else. The consideration given for the purchase of a thing. Amount which a prospective seller indicates as the sum for which he… …   Black's law dictionary

  • price ring — A group of firms in the same industry that have agreed amongst themselves to fix a minimum retail price for their competing products, thus forming a cartel Price rings are illegal in many countries unless they can be shown to be in the public… …   Big dictionary of business and management

  • Price Daniel, Jr. — Price Daniel Jr. Speaker of the Texas House of Representatives In office 1973–1975 Preceded by Rayford Price Succeeded by Bill W. Clayton Texas State Representa …   Wikipedia

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