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Bilateral Monopoly

   Also found in: Wikipedia 0.01 sec.
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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He then examines the elements necessary for any assemblage conclusion of highest and best use, including market value, bilateral monopoly, and the reasonably probable aspect of highest and best use.
Bilateral Monopoly Disputes Disputes over valuation of critical water-bearing properties took place within a bilateral monopoly context.
In Milbrew, Judge Posner used a bilateral monopoly model to test the bona fides of a related-party transaction, where one party purportedly sold a dairy processing plant to an entity it controlled.
 
 
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