what is price leadership 
price leadership occurs when a leading firm in a given industry is able to exert enough influence in the sector that it can effectively determine the price of goods or services for the entire market this type of firm is sometimes referred to as the price leader this level of influence oftentimes leaves the rivals of the price leader with little choice but to follow its lead and match the prices if they are to hold onto their market share this phenomenon is common in industries that have oligopolistic market conditions such as the airline industry in the airline industry a dominant company typically sets the prices and other airlines feel compelled to adjust their prices to match the prices of the leading firm 