Abstract
The theory based on the kinked demand curve can be considered as a particular theory of oligopoly, which sought to provide an explanation for some degree of price rigidity. It was widely believed during the 1930s that the output prices of manufactured goods had been unresponsive to the low levels of demand experienced, which found a reflection in the idea of ‘administered prices’ (Means 1935).
This chapter was originally published in The New Palgrave: A Dictionary of Economics, 1st edition, 1987. Edited by John Eatwell, Murray Milgate and Peter Newman
This is a preview of subscription content, log in via an institution to check access.
Bibliography
Boulding, K.E., and G.J. Stigler (eds.). 1953. Readings in price theory. London: Allen & Unwin.
Hall, R.L., and C.J. Hitch. 1939. Price theory and business behaviour. Oxford Economic Papers 2: 12–45. Reprinted in Oxford studies in the price mechanism, ed. T. Wilson and P.W.S. Andrews, Oxford: Clarendon Press.
Means, G.C. 1935. Industrial prices and their relative inflexibility, US Senate Document 13, 74th Congress 1st Session. Washington, DC: U.S. Govt. Print. Off.
Reid, G.C. 1981. The kinked demand curve analysis of oligopoly: Theory and evidence. Edinburgh: Edinburgh University Press.
Stigler, G.J. 1974. The kinky oligopoly demand curve and rigid prices. Journal of Political Economy 55: 432–449. Reprinted in Boulding and Stigler. (1953).
Sweezy, P.M. 1939. Demand under conditions of oligopoly. Journal of Political Economy 47: 568–573. Reprinted in Boulding and Stigler. (1953).
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Copyright information
© 1987 The Author(s)
About this entry
Cite this entry
Sawyer, M. (1987). Kinked Demand Curve. In: The New Palgrave Dictionary of Economics. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-349-95121-5_781-1
Download citation
DOI: https://doi.org/10.1057/978-1-349-95121-5_781-1
Received:
Accepted:
Published:
Publisher Name: Palgrave Macmillan, London
Online ISBN: 978-1-349-95121-5
eBook Packages: Springer Reference Economics and FinanceReference Module Humanities and Social SciencesReference Module Business, Economics and Social Sciences
Publish with us
Chapter history
-
Latest
Kinked Demand Curve- Published:
- 17 March 2017
DOI: https://doi.org/10.1057/978-1-349-95121-5_781-2
-
Original
Kinked Demand Curve- Published:
- 24 November 2016
DOI: https://doi.org/10.1057/978-1-349-95121-5_781-1