Kinked Demand
The kinked demand curve theory is an economic theory regarding oligopoly and monopolistic competition. When it was created, the idea fundamentally challenged classical economic tenets such as efficient markets and rapidly changing prices, ideas that underlie basic supply and demand models. Kinked demand was an initial attempt to explain sticky prices.
Read more about Kinked Demand: Theory, Formulation, Criticism, Contemporary Reformulation
Famous quotes containing the word demand:
“All television ever did was shrink the demand for ordinary movies. The demand for extraordinary movies increased. If any one thing is wrong with the movie industry today, it is the unrelenting effort to astonish.”
—Clive James (b. 1939)