What is the kinked demand curve? Is it a form of oligopoly, other than the collusive oligopoly? Are these the only two types of oligopoly?

The kinked demand curve is the curve that showcases when the demand curve is not resulting in a straight line. This is the case where there are varying demand elasticities with a rise and a fall in prices. This kink emanates from competitors in the market who pose different reactions to increments in price and price falls. The kinked demand curve theory assumes that the market has few dominants and that firms are all in a bid to maximize their profits.

The kinked demand curve is an oligopoly because in an oligopolistic market there is competition from the existing oligopolists. This, therefore, is under the non-collusive oligopoly. Collusive oligopoly, unlike non-collusive, is whereby there is no competition but cooperation among firms.

Apart from collusive and non-collusive, other forms of oligopoly include the pure or perfect oligopoly where the production of homogeneous commodities is practised and imperfect or differentiated oligopoly where there is the production of substitutes but differentiated commodities.