verðleiðninessu
Verðleiðninessa is an Icelandic term that translates to "price leadership" or "price following" in English. It refers to a situation in an oligopolistic market where one firm, typically the largest or most dominant, sets the price for a product or service, and other firms in the market then follow suit. This behavior can lead to a degree of price stability in the industry, as smaller competitors adjust their prices in response to the price leader's decisions.
The existence of a price leader can arise from several factors. A dominant firm might have lower
In some cases, price leadership can be explicit, with firms openly acknowledging the role of a particular
While price leadership can lead to stable prices, it can also raise concerns about collusion and reduced