The kinked demand curve makes an oligopolist reluctant to raise price because rivals will:

1. The kink comes from rivals reacting differently to rises and falls. 2. Competing oligopoly firms commit to match price cuts, but not price increases. 3. A firm that raises its price therefore loses customers to rivals who hold theirs steady. 4. A firm that cuts its price gains little because rivals cut too. 5. Both directions look unattractive, which is why oligopoly prices can be sticky. _Source: OpenStax Principles of Microeconomics for AP(R) Courses 2e (CC BY 4.0), Ch 10 'Monopolistic Competition and Oligopoly', sections 10.1-10.2_