The apparent stickiness of the price of goods sold by oligopolists can be explained by the

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The kinked demand curve model explains how oligopolists can maintain stable prices even if their costs change. The theory posits that if one firm raises its prices, it will lose a significant number of customers to its competitors, who will not follow suit by raising their prices. On the other hand, if one firm lowers its prices, it will not gain many customers because its competitors will match the price cut. As a result, the demand curve for the firm is "kinked," with a steep slope above the current price and a flat slope below the current price. This behavior can lead to price stickiness in the market.

The Apparent Stickiness of the Price of Goods Sold by Oligopolists