If each firm in an oligopolistic market matches price decreases but does not match price increases

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If each firm in an oligopolistic market matches price decreases but does not match price increases, prices become rigid at the prevailing market price. This is because if one firm were to try to increase the price, the others would not follow suit and would instead continue to sell at the lower price, causing the first firm to lose market share. However, if one firm were to decrease the price, the others would match it to avoid losing market share. This leads to a situation where prices become sticky or rigid at the prevailing market price.

If Each Firm in an Oligopolistic Market Matches Price Decreases