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In this video I will explain Kinked Demand Curve Model Of Oligopoly OR Sweezy Model Of Oligopoly. The kinked demand curve model of Oligopoly was presented by Paul Sweezy. It assumes that if, a firm under Oligopoly increases the price of its good, other firms in the industry are unlikely to match the price. The result is a loss of market share and big decreases in quantity demand. if the firm decreases the price of its good other firms in the industry are very likely to match the price. The result is no gain in market share. The kinked demand curve AR(average revenue curve) consists of two segments. The left side is more elastic and right is less elastic. Marginal Revenue curve holds three segments. One is linked with the more elastic segment,one is related with the less elastic segment and one is associated with the kink.