Abstract
Through half a century of controversy over the complexities of oligopolies and their kinked demand functions one simple aspect of the kinkiness has been by-passed. Invariably the kinked demand functions are represented as lines sloping away from the starting price even though some oligopolies are sellers of homogeneous products. Competition among sellers of identical goods demands variations in the standard kinked demand device to adequately explain their market behavior. A flat-kinked function is logically necessary to illustrate the marker for the homogeneous products of oligopolistic sellers.
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References
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Whitten, D.O. A flat-kinded demand function for oligopolistic sellers of homogeneous products. Rev Ind Organ 1, 206–215 (1984). https://doi.org/10.1007/BF02457064
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DOI: https://doi.org/10.1007/BF02457064