A price umbrella, also known as the umbrella effect, is a pricing effect often created by a dominant company, in which competing firms can find buyers as long as they set their price at or below the level of the dominant one.^[1][2] This may not apply if the competing firm's products are inferior.

Cartels can generate a price umbrella effect, enabling less efficient rivals to charge higher prices than they might otherwise be able to.^[3][4]