Bilateral Monopoly Law and Legal Definition
Bilateral monopoly means a market condition where there is only one buyer and one seller. In this type of market the seller tends to charge high prices on the buyer and the buyer will tend to pay a price that is as low as possible. Thus a transaction in a bilateral monopoly occurs only through a bargaining between the buyer and the seller and in this type of transaction there is no fear of a third person coming in. Thus, this type of market delays the transaction for the reason that the buyer and seller need to arrive at a better deal through their bargaining power.
