Illustrates the barometric pricing briefly

Illustrates the barometric pricing briefly?




Barometric pricing:

It is the method of leadership pricing. Under this type of price leadership, there is no leader firm. However, one firm among the oligopolistic firms announces a price change first. It is followed by other firms within the industry. The barometric price leaders require not be a dominant firm along with the lowest cost or still the largest firm in the industry although they respond to changes in business environments rapidly. On the origin of a formal or informal tacit agreement that the firms in the industry accept a firm like price leader who may function firstly upon the environmental or market changes.

   Related Questions in Managerial Economics

2015 ┬ęTutorsGlobe All rights reserved. TutorsGlobe Rated 4.8/5 based on 34139 reviews.