Kinked demand curvePrice rigidityStackelberg oligopolyIn a Stackelberg oligopoly with cost asymmetry and possibility of entry, the Stackelberg leader faces a kinked demand curve. For a robust interval of cost of thSocial Science Electronic Publishing...
the kinked demand curve:弯折的需求曲线 下载积分: 500 内容提示: The Kinked Demand CurveV. BhaskarUniversity College LondonMarch 15, 2007The kinked demand curve (Sweezy, 1939; Hall and Hitch, 1939) has been oneof the staples of oligopoly theory. It was originally formulated as a theory of...
kinked demand curve Fig. 106Kinked demand curve. a curve that explains why thePRICEScharged by competing oligopolists (seeOLIGOPOLY), once established, tend to be stable. In Fig. 106, DD is theDEMAND CURVEif all firms charge the same price. Starting from point K, if one firm felt that ...
proof equilibrium giving rise to a kinked demand curve at the monopoly price. The traditional kinked demand theory has been criticized on empirical grounds (Stigler, 1947; Pimeaux and Bomball, 1974) since oligopoly prices do not appear
The kinked-demand curve model (also called Sweezy model) posits that price rigidity exists in an oligopoly because an oligopolistic firm faces a kinked demand curve, a demand curve in which the segment above the market price is relatively more elastic than the segment below it. ...
The reason that the firm faces a kink in its demand curve is because of how the other oligopolists react to changes in the firm’s price. If the oligopoly decides to produce more and cut its price, the other members of the cartel will immediately match any price cuts—and therefore, a...
Hence, in the firm's view, the demand curve appears kinked at the current price and the firm has no incentive to modify its price. Because of the paucity of good alternatives, the model was quickly accepted as the theory of oligopoly by many textbook writers. The theory did not explain ...
论文-Analysis of Supply and Demand The Law of Supply and Demand 热度: Sweezy’s1942contribution. Samuelsonimmortalizedit. The“young”oligopolycase. Theindustrystartsoutwithprice warsandgravitatestoward“stickyprices.” Therearetwosetsofdemand curves:onewherecompetitor’s ...
Kinked Demand Curve 来自 Springer 喜欢 0 阅读量: 107 作者: V Bhaskar 摘要: The kinked demand curve, one of the staples of oligopoly theory, was originally formulated as a theory of price rigidity. We review dynamic game-theoretic reformulations, which give rise to a theory of collusive ...
Stigler, G.J., 1978. The literature of economics: the case of the kinked oligopoly demand curve. Economic Inquiry, 16(2), 185-204.The literature of economics: the case of the kinked oligopoly demand curve - Stigler - 1978STIGLER, G.J. (1978). "The literature of Economics: the ca- ...