The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Kinked Demand Curve

  • V. Bhaskar
Reference work entry


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 price determination.


Bertrand competition Collusion Cournot competition Duopoly Folk theorem Kinked demand curve Markov perfect equilibria Oligopoly Price rigidity Quick response equilibria Repeated games 

JEL Classifications

D21 D43 L11 L13 
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Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • V. Bhaskar
    • 1
  1. 1.