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Stickiness of prices in oligopolistic industries

The "kinked-demand-curve" model was developed into the 1930 year in part to help describe: (i) barriers to entry in oligopoly markets. (ii) the allegedly excessive stickiness of prices into oligopolistic industries. (iii) how competitive industries become oligopolies. (iv) why oligopolies agree while setting their initial prices. (v) how formal collusion is used to establish output quotas.

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