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Economics
Bilateral Monopoly
A market situation where there is only one seller (monopoly) and one buyer (monopsony), each having market power over the transaction.
In a bilateral monopoly, the price and quantity are determined by negotiation rather than pure supply and demand. Each side can leverage their position, making the market more strategic and less predictable.
Like a one-on-one chess match — both players have influence, and every move matters.
Real world: A small town with one factory (buyer) and one raw material supplier (seller) negotiating prices.
💡 Bilateral monopoly occurs when a single buyer and seller interact, with both exerting influence over prices and terms.