priceleadership
Price leadership is a pricing arrangement in which a leading firm or firms in an oligopolistic market set the price for a product or market, and other firms follow with matching or near-matching prices. The leader often has a dominant market position, superior information, or lower costs, enabling it to establish a price signal that rivals adopt. This pattern commonly arises in markets with few competitors, similar products, and barriers to entry.
Types of price leadership include dominant-firm price leadership, where the largest firm unilaterally sets prices and
Mechanisms involve a price change by the leader followed by slower or partial adjustments by competitors, producing
Implications and regulation vary by jurisdiction. Price leadership can provide stability and predictability for consumers and