price leader(redirected from Leader, Price)
price leadera FIRM that establishes the market PRICE for a good or service and initiates price changes that are then followed by competing suppliers. Two kinds of price leader have been identified:
- DOMINANT FIRMS that are able to secure compliance to their prices by smaller rivals because of their powerful positions in the market;
- barometric price leaders whose price changes are accepted by other suppliers because of their recognized adeptness at establishing prices fully reflective of changing market conditions.