What is a Price Umbrella?
posted by John Spacey, November 17, 2015 updated on November 24, 2016
A price umbrella is the price set by a dominant competitor in a market. Smaller competitors generally need to set a lower price to attract customers. In some cases, niche competitors may offer something special that enables a higher price but the umbrella price acts as a sort of price gravity on all competitors in the market. As a result, a change in an umbrella price can cause great disruption across an industry.| Overview: Price Umbrella | ||
| Area | Economics | |
| Definition | A price set by a dominant competitor in an industry. | |
| Related Concepts | Category Killer | |
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