General purpose of this article is to Discuss on Kinked Demand Theory of Oligopoly. Here explain Kinked Demand Theory in economic terms with example and curve. There isn’t specific single theory of oligopoly. The two that are most generally discussed, however, are the kinked‐demand theory plus the cartel theory. The kinked‐demand theory will be illustrated in Figure and applies to oligopolistic markets where each firm sells a differentiated product or service. According to the kinked‐demand principle, each firm will confront two market demand curves for the product.
Discuss on Kinked Demand Theory of Oligopoly
