What is a bilateral monopoly?

bilateral monopoly is a situation with two main parties that represent the main players in their respective roles, to the extent that no other suitable competitors can be found on both sides of the transaction. To put it simply, experts refer to the situation, have a "only buyer and a single seller". The etymology of the phrase indicates its meaning, where the only monopoly is simply the industry control and the use of the word "bilateral" concerns both sides of the transaction situation.

In complex markets, bilateral monopolies can occur in many different ways. These types of situations can occur in almost the same way as the traditional monopoly, where companies are large enough to control the area by gaining all smaller competitors in their industry. Where two of these monopolies need to do business, the result can be described as a bilateral monopoly.

Some other modern examples of this situation more precisely describe how bilateral monopolies would become in most of the current contextat. Experts refer to these situations as "relationship investments" where companies or other parties invest time, money or efforts in sympathetic ways that leave them in some way tied to another party. In many of these situations, it includes a relationship to offer qualified services for money.

An example of a modern bilateral monopoly would be a set of qualified workers relating to and join the society that dominates its industry. Over time, these workers come to gain an even higher level of skills in specific processes unique to this company. If workers cannot find satisfactory work outside the company over time and the company is not similarly able to find satisfactory alternative workers, it is a bilateral monopoly that was caused by an investment focused on a specific Goals employer.

Another common example of this situation isNegotiation of a single department with a single employer who has a monopoly for the entire industry, or the local expression of industry or area. Analysis of negotiations between a large department and a large society often reveals certain characteristics of this type of situation. In general, certain types of arbitration or legal acts may apply to these transactions, where the use of the term 'bilateral monopoly' can help off the party to find out what is happening to a specific negotiation or the proposed transaction.