bilateral monopoly

Also found in: Wikipedia.

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).
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

bilateral monopoly

a market situation comprising one seller (like MONOPOLY) and one buyer (like MONOPSONY).
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
Mentioned in ?
References in periodicals archive ?
The main result of this competition is an equilibrium at which the banking system acts as a multiplant monopolist, zeroing firms profit unless firms collude and place the overall interaction in the context of bilateral monopoly. It is a result that can be made relevant to reality if assessed in terms of tendencies in banking and industry.
The problem of bilateral monopoly has received much attention over the last 150 or so years.
Standard doctrine relies on familial bonds and the unilateral right of partition to mitigate the problem of bilateral monopoly and to foster cooperation in the management of the tenants' common resource.
Edgeworth, had developed isolated exchange theories that were relevant to the early bilateral monopoly models of A.L.
These "Coasean markets" are in fact a form of bilateral monopoly.
A breach creates a bilateral monopoly: the parties would prefer to settle the victim's legal claim rather than litigate over it, but they can do so only by transacting with each other.
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.
For those farmers who had contentious negotiations with the Board, disputes centered on three issues: valuation of property, bilateral monopoly, and third-party effects.
The second basic element is the relationship between the bureaucracy and the government, which is characterized by the fact that it is a "bilateral monopoly": the politicians depend on the bureaucrats for services, and the bureaucrats depend on the politicians for funding.
"That suggests a move to a bilateral monopoly, and economists will tell you that a bilateral monopoly is not necessarily more efficient than a monopsony."
Perhaps the major problem was the bilateral monopoly between hospitals and purchasers.
In effect, labor on one side and industry on the other array themselves as one big bilateral monopoly. And as is well known, the outcome of bargaining in a bilateral monopoly differs from that when the two sides have competitors to whom a disappointed party could switch.(50)

Full browser ?