1. Neither empirical evidence nor theoretical logic offers any justifica- tion for the persistence of the...

 

Transcribed Image Text:

1. Neither empirical evidence nor theoretical logic offers any justifica- tion for the persistence of the dominant position of the kinked demand curve as a model of oligopolistic behaviour.' Discuss this statement, and consider whether alternative models of oligopoly represent any advance on the kinked demand model. 1. Neither empirical evidence nor theoretical logic offers any justifica- tion for the persistence of the dominant position of the kinked demand curve as a model of oligopolistic behaviour.' Discuss this statement, and consider whether alternative models of oligopoly represent any advance on the kinked demand model.

Answer rating: 100% (QA)

The kinked demand curve model introduced by economist Paul Sweezy in the 1930s attempts to explain price rigidity and stability observed in oligopolis... View the full answer