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Illustrate the term price leadership strategy.
he presence of a leader assists to regulate the market and ignore too many price changes oligopolistic markets, in that the number of competitors is relatively low, favour the occurrence of a market leader who adopts an anticipative behaviour and periodically finds out prices. Some other firms than recognize the leader’s role and since follower by accepting prices the leadership strategy is created to stave off price wars and predatory competitions, that tends to force down prices as well as all competing firms.
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