Microeconomic Theory "Price Policy in Oligopoly" Instr.: Dr. Michael Chletsos Submitted by: Maria Soulimioti Price-output behavior in Oligopoly The kinked demand curve: This model was developed in 1939 by the economist Sweezy. It assumes that an oligopolist will expect rival firms to follow any price decrease it makes but not follow any increase. Thus the elasticity of demand for the firm's product is much greater above the ruling price than below it, and hence there is …showed first 75 words of 1383 total…

…showed last 75 words of 1383 total…rather than merely to erect entry barriers. BIBLIOGRAPHY λBeardshaw, John. "Economics". Pitman Publishing, 1992: Great Britain. λCaporaso, James A. "Theories of Political Economy". Cambridge University Press, 1992: United States Of America. λHibdon, James E. "Price and Welfare Theory". 1969: USA. λHirshleifer, Jack, Glazer, Amihai.: "Price Theory and Applications". 1992: USA. λhttp://www.ryerson.ca/~ibryan/ecn104/wk12/lect12.html. λhttp://www.bose.valencia.cc.fl.us/economics/on-line-micro/ch25a.html. λhttp://www.vmi.edu/econ/ab.oligopol.htm.