The "kinked" oligopoly demand curve is a result of the assumption by an oligopolist that:

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The kinked demand curve assumes that if one firm increases its price, the other firms in the oligopoly will not follow suit and will maintain their current price. However, if one firm decreases its price, the other firms will lower their price in order to maintain their market share. This creates a "kink" or discontinuity in the demand curve at the current market price, where the demand is more elastic below the price and less elastic above the price. This assumption explains why oligopolies tend to have stable prices in the short run, as firms are hesitant to raise prices and lose market share to competitors, but are quick to lower prices to prevent losing market share.

The "Kinked" Oligopoly Demand Curve Is a Result of the Assumption