Prislederskap

Prislederskap, often translated as "price leadership," is a pricing strategy where a dominant firm in an industry, the price leader, sets its prices, and other smaller firms, the price followers, then adjust their own prices to match. This strategy can emerge in markets with a few dominant sellers and many smaller ones, where the smaller firms may lack the resources or market power to set their own independent prices.

The price leader typically makes its pricing decisions based on its own costs, demand conditions, and strategic objectives. Once the leader's price is announced or observed, the followers find it in their best interest to adopt a similar price. This is because deviating significantly from the leader's price could lead to a loss of market share, as customers would likely gravitate towards the lower-priced option if the follower undercuts, or be unwilling to pay a premium if the follower overprices.

This form of implicit collusion can reduce price competition within an industry. While not an explicit agreement, the predictable behavior of price followers effectively mimics the outcome of a cartel. The stability of this arrangement depends on the followers' willingness to conform and the price leader's ability to maintain its dominant position and make pricing decisions that are beneficial to the group as a whole. Market conditions, the number of firms, and the potential for new entrants can all influence the sustainability of prislederskap.