"In a competitive market, parity pricing is the appropriate strategy." Justify either for or against.

For the statement — In a competitive market, parity pricing is indeed the appropriate strategy. Reasons:

1. Avoids price war — When price leadership is well established (especially in oligopolistic markets), charging according to what competitors are charging is the only safe policy. Charging lower than the leader may lead to a price war.
2. Suitable for homogeneous products — Where competition is very severe and competitive products are homogeneous (similar in nature), parity pricing avoids the risk of losing customers to competitors.
3. Less troublesome and less costly — It is less troublesome and less costly than an individualistic pricing strategy that requires extensive market research.