• Bilateral Monopoly is a market in which a single seller (a Monopoly) is confronted with a single buyer (a Monopsony). Under these circumstances, the theoretical determination of output and price will be uncertain and will be affected by the interdependence of the two parties.
• A market that has only one supplier and one buyer. The one supplier will tend to act as a monopoly power, and look to charge high prices to the one buyer.
• Large companies would essentially monopolize all the jobs in a single town and use their power to drive wages to lower levels.
Examples of Bilateral Monopoly