The pricing strategy in which one firm is allowed by its rivals to establish the market price for all firms in the market is called

Question

Quizplus · Accepted Answer

Price leadership strategy allows one firm to establish market price for all firms in the market with the consent of its rivals. This happens when the leading firm has a dominant market share or is perceived to have superior knowledge and expertise in the industry. Other firms in the market usually follow the price set by the price leader, which helps to avoid price competition and maintain stable prices in the market. Overt collusion refers to a secret agreement between firms to set prices at a certain level, while pattern pricing involves setting prices according to a predetermined pattern or formula.

The Pricing Strategy in Which One Firm Is Allowed by Its