Year 12s: what will be the first way you research your future options? >>

Oligopolies !!! What's the point

In oligopolies when firms lower their price, it is suggested that other firms will follow to maintain and protect their market share? Why is this? What is the importance of keeping their market share? and why do firms lower their price in first place if in an oligopolistic market structure they know other firms will follow? I understand that the kinked demand curve demonstrates price stickiness but realistically would firms lower prices and go in to a price cutting war ??? Any examples ??? I just need help in to building a strong argument thank you in advance