United States the economist Siweiqiti out to explain the economic model of oligopolistic market price rigidity phenomenon. Note: The phenomenon of price rigidity phenomenon is that when the cost of change within a certain range, while the price of the product unchanged. Model assumptions
Sweezy:
oligopoly firms will be aware of the interdependence, therefore, when an oligopolistic manufacturers price, its competitors do not raise prices to maintain market share; an oligopoly firms cut prices, its competitors cut prices in order to avoid loss of market share, thus forming the characteristic demand curve - bend the demand curve, as shown.
[Edit this paragraph] Sweezy model of explanation:
Sweezy model, because the vendor's demand curve is bent World pipe network reported that the world's steel pipe network to provide the world's steel pipe network editor , so the marginal revenue curve is discontinuous, so long as the location of the marginal cost curve The change does not exceed the range of the vertical discontinuity of the marginal revenue curve will remain at the same level of production and marginal revenue equal to the equilibrium quantity and equilibrium price unchanged, so you can keep the price unchanged.
[Edit this paragraph] Sweezy model evaluation:
World Pipe network informed, Western economists believe that the, Sweezy model of price rigidity phenomenon an explanation, but the model does not explain price rigidity is How's that, so can not really explain the problem of oligopoly pricing, price rigidity to explain this is the desire to avoid mutually destructive price competition from the Prisoner's Dilemma and manufacturers.