the kinked demand curve in oligopoly is used to explain sticky prices.
the kinked demand curve in oligopoly is used to explain?
sticky prices
kinked demand









































the kinked-demand curve theory is an economic theory regarding oligopoly and monopolistic competition. kinked demand was an initial attempt to explain sticky prices.









































section::::theory.









































"kinked" demand curves and traditional demand curves are similar in that they are both downward-sloping. they are distinguished by a hypothesized concave bend with a discontinuity at the bend - the "kink." therefore, the first derivative at that point is undefined and leads to a jump discontinuity in the marginal revenue curve.
kinked demand
section::::contemporary reformulation.









































game theory and models of strategic interaction have largely replaced kinked demand to explain price dislocations and slowly adjusting prices. for further information see:









































section::::contemporary reformulation.:reading on contemporary applications.









































bullet::::- a duopoly price game









































bullet::::- a theory of dynamic oligopoly, price competition, kinked demand curves, and edgeworth cycles









































bullet::::- competition in the aluminium industry 1945-58









































bullet::::- the kinked demand curve: a game-theoretic approach









































section::::references.









































bullet::::- bhaskar, v. 1988. "the kinked demand curve: a game-theoretic approach" "international journal of industrial organization" vol. 6, pp. 373-384.
kinked demand