Gas stations at a corner often have prices that are identical (or really close to identical).That doesn't mean that a mile down the road that the prices are the same as at this corner - even if the stations get their gasoline shipments from the exact same sources.

How can you tell the difference between a kinked-demand model and collusion?Bothpredict identical prices across firms - so it looks like it could be either.Or maybe the identical prices are caused by one firm setting the price and rest following in line - sp its price leadership?Maybe its monopolistically competitive because firms just down the road have a different price?

So what is it: Is this a kinked demand oligoply? a price leadership monopoly? a monopolistically competitive model? or is an example of collusion?