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)