Glossary of competition terms

This Glossary was prepared by DG COMP and the OECD for non-competition specialists. Each term is enriched with references of national case laws from the e-Competitions Bulletin. (© European Union - © OECD)

Price Leadership

Prices and price changes established by a dominant firm, or a firm accepted by others as the leader, and which other firms in the industry adopt and follow. When price leadership is adopted to facilitate collusion, the price leader will generally tend to set a price high enough that the least efficient firm in the market may earn some return above the competitive level.