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Re examination of Kinked Demand Oligopoly Market: Theory, Evidence and Policy Implications from Lakshadweep

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  • Pazhanisamy, R.

Abstract

There are number of markets discussed in the economic theory seems only as imaginative and lacks proper investigation on the existence in the real world situation and their validity. The kinked demand curve hypothesis is a famous one among them which is under crux among the economic researcher. In the past few decades the existence of this market in the real world economies and its impact is continue to be a puzzle and a very few attempts were made in this areas with a few oscillating conclusions. With this backdrop this attempt is made to fill this gap in economics literature of re examining the existence and the impact of the kinked demand theory hypothesis with a special reference to Lakshadweep islands of India.

Suggested Citation

  • Pazhanisamy, R., 2018. "Re examination of Kinked Demand Oligopoly Market: Theory, Evidence and Policy Implications from Lakshadweep," MPRA Paper 91176, University Library of Munich, Germany, revised 25 Dec 2018.
    • Handle: RePEc:pra:mprapa:91176
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    References listed on IDEAS

    as
    1. Paul M. Sweezy, 1939. "Demand Under Conditions of Oligopoly," Journal of Political Economy, University of Chicago Press, vol. 47, pages 568-568.
    2. Maarten Dossche & Freddy Heylen & Dirk Van den Poel, 2010. "The Kinked Demand Curve and Price Rigidity: Evidence from Scanner Data," Scandinavian Journal of Economics, Wiley Blackwell, vol. 112(4), pages 723-752, December.
    3. Stephane Dupraz, 2017. "A Kinked-Demand Theory of Price Rigidity," 2017 Meeting Papers 387, Society for Economic Dynamics.
    4. Sen, Debapriya, 2004. "The kinked demand curve revisited," Economics Letters, Elsevier, vol. 84(1), pages 99-105, July.
    5. Bhaskar, V & Machin, Stephen & Reid, G, 1991. "Testing a Model of the Kinked Demand Curve," Journal of Industrial Economics, Wiley Blackwell, vol. 39(3), pages 241-254, March.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Kinked demand hypothesis: kinked Demand theory Evidence and Consequences; Sticky prices; Coordination failure; real rigidities; micro economic impact;
    All these keywords.

    JEL classification:

    • A1 - General Economics and Teaching - - General Economics
    • A2 - General Economics and Teaching - - Economic Education and Teaching of Economics
    • A23 - General Economics and Teaching - - Economic Education and Teaching of Economics - - - Graduate
    • D4 - Microeconomics - - Market Structure, Pricing, and Design
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • D6 - Microeconomics - - Welfare Economics
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
    • E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
    • F6 - International Economics - - Economic Impacts of Globalization
    • F61 - International Economics - - Economic Impacts of Globalization - - - Microeconomic Impacts
    • H4 - Public Economics - - Publicly Provided Goods
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • H5 - Public Economics - - National Government Expenditures and Related Policies
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics

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