Bilateral Monopoly
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Bilateral Monopoly

A situation in which there is a single buyer and a single seller of a product. Each party has an incentive to extract the most benefits it can; specifically, the buyer wants to pay the lowest possible price and the seller wants to extract the highest. The result of the ensuing negotiation is somewhere in between. Bilateral monopolies are seen in labor agreements in which one company provides nearly all the jobs in a town (and wants to pay the lowest possible wage) and nearly all citizens in the town work for the company (and want the highest wage).

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Bilateral Monopoly (redirected from Bilateral Monopolies)

Bilateral Monopoly
(redirected from Bilateral Monopolies)