Kinked Demand Curve Model

In this model, each firm is facing a kinked demand curve because if one firm raises its price above the current price then it’s competitors may not follow in order to get the entire market share and secondly if a firm reduces its prices below the current price then it’s competitors will reduce their price by greater proportion in order to capture the market.
If the above Assumptions follow then:
Firms face a discontinuous Marginal Revenue Curve and have space at the kink.
Demand Curve is relatively elastic for prices higher than the current price.
Demand Curve is relatively inelastic for prices lower than the price.
Space in Marginal Revenue Curve implies that firm’s Marginal Costs can deviate even when price and quantity are constant and thus implying Price Rigidity.