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-Dominant- [34]
3 years ago
5

Can occur when the price leadership model breaks down

Business
1 answer:
mina [271]3 years ago
3 0
Price leadership refers to the setting of price in a market by a dominant company which is observed by other in the same market. It is a form of cooperative pricing. The method of price leadership is often used by matured and established industries.
INCREASE IN RIVALRY AMONG COMPANIES  AND DECREASE IN PRICE AND PROFITS can occur when the price leadership model break down.
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