In fact, the case of symbiotic production with independent markets is equivalent to that of two bilateral monopolies.
Notice that the independence of the demand between the two markets is crucial to separate the symbiotic production into two bilateral monopolies.
Bilateral monopolies tend to raise transaction costs and encourage unproductive strategic behavior.
The mere threat of exit is powerful enough that it enables tenants to free ride or shirk obligation and thereby exacerbates many of the problems implicit in bilateral monopolies.
Coasean markets behave like bilateral monopolies
in the sense that within them price is indeterminate.
If a manufacturer can charge different wholesale-prices to different retailers--if it can price discriminate between them--then a multiple-retailer channel may be conceptualized as a set of bilateral monopolies
within which channel coordination is optimal.
Just compensation and bilateral monopolies
are the keys here.
This can at least partially explain why in many situations public utilities represent cases of bilateral monopolies
If this combination of problems occurs only in bilateral monopolies or close-knit bilateral oligopolies, aren't we just talking about an oddity with infrequent practical significance?
There are three principal types of asset specificity that compartmentalize industries into bilateral monopolies and oligopolies.
Economic theory provides a suitable model for analyzing bilateral monopolies or cartels.
As table 1 shows, vertical collusion between bilateral monopolies has been extraordinarily remunerative for the players in this respect.