The Kinked Demand Model of Oligopoly

Hey everyone, in this video I’m going to discuss the kinked demand model of oligopoly.

Chapters:
0:00 Intro / background information
1:28 Behaviour of firms
4:07 Diagram
6:30 How to understand Profit maximisation (MR=MC) when MR is discontinuous
7:55 Price stickiness

Original Article:
Sweezy, P., 1939, Demand under conditions of oligopoly, Journal of Political
Economy 47, 568-573.

Other videos of mine that might be relevant:
Understanding Profit Maximisation    • Understanding Profit Maximisation (wi...  
Interpreting Price Elasticity of Demand    • Interpreting Price Elasticity of Demand  
Finding Marginal Revenue from Demand:    • Finding Marginal Revenue from Demand