What is Barometric Price Leadership?


In barometric price leadership, one firm announces a change in price that it hopes will be accepted by others.  The leader need not be the largest firm in the industry.  Infact, this leader may actually change from time to time.  The leader must, however, be reasonably correct in its interpretation of changing demand and cost conditions so that suggested price changes will be accepted and stick.  In essence, the barometric price leader merely initiates a reaction to changing market conditions that other firms find in their best interest to follow.  These conditions might include such things as cost increases (or decreases) and sluggish (or brisk) sales accompanied by inventory build-ups (or shortages) in the industry.

Like it? Share with your friends!

BMS Team

We, at BMS.co.in, believe in sharing knowledge and giving quality information to our BMS students. We are here to provide and update you with every details required by you BMSites! If you want to join us, please mail to [email protected].


Warning: Undefined array key "html5" in /home/bmsnewco/public_html/wp-content/plugins/facebook-comments-plugin/class-frontend.php on line 140

Facebook comments:

This Website Is For Sale. Email us an offer we cannot refuse on [email protected] :)

Choose A Format
Personality quiz
Series of questions that intends to reveal something about the personality
Trivia quiz
Series of questions with right and wrong answers that intends to check knowledge
Voting to make decisions or determine opinions
Formatted Text with Embeds and Visuals
The Classic Internet Listicles
The Classic Internet Countdowns
Open List
Submit your own item and vote up for the best submission
Ranked List
Upvote or downvote to decide the best list item
Upload your own images to make custom memes
Youtube and Vimeo Embeds
Soundcloud or Mixcloud Embeds
Photo or GIF
GIF format