Game Theory and the Kinked Demand model suggest that competing firms in an industry dominated by only two firms may be: Group of answer choices too quick to cut prices because they fail to anticipate that rivals may also cut their prices. reluctant to change prices because they anticipate that rivals will ignore price cuts but match price increases. reluctant to change prices because they anticipate that rivals will match price cuts but ignore price increases. too quick to raise prices because they fail to anticipate that rivals may gain market shares