A "kinked" demand curve reflects a tendency on the part of an oligopolist to:

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In an oligopoly, firms are interdependent and must take into account the potential reactions of their competitors to changes in price. The kinked demand curve model suggests that an oligopolist's demand curve is more elastic above the current price than below it, reflecting the idea that competitors are more likely to match price decreases than price increases. Therefore, the firm is incentivized to maintain the current price rather than change it. As a result, following price reductions (to avoid losing market share) but not price increases is the rational behavior for an oligopolist under this model.

A "Kinked" Demand Curve Reflects a Tendency on the Part