Abstract
A bilateral monopoly is a market that is characterized by one firm or individual, a monopolist, on the supply side and one firm or individual, a monopsonist, on the demand side. The input markets of the monopolist and the output market of the monopsonist can be of any form. The essential ingredient is the single seller–single buyer situation. Because a buyer and a seller of a product, perforce, do business with each other, they are clearly able to make legally binding agreements. This contrasts with firms in the same industry, which do not sell to one another, and which are often precluded by anti-collusion laws from making legally enforceable contracts. Of course, it is also possible to view bilateral monopoly noncooperatively.
This is a preview of subscription content, log in via an institution.
Buying options
Tax calculation will be finalised at checkout
Purchases are for personal use only
Learn about institutional subscriptionsBibliography
Bowley, A. 1928. Bilateral monopoly. Economic Journal 38: 651–659.
Cross, J. 1965. A theory of the bargaining process. American Economic Review 54: 67–94.
Edgeworth, F. 1881. Mathematical psychics. London: Kegan Paul.
Fellner, W. 1949. Competition among the few. New York: Knopf.
Friedman, J. 1986. Game theory with applications to economics. New York: Oxford University Press.
Harsanyi, J. 1956. Approaches to the bargaining problem before and after the theory of games. Econometrica 24: 144–156.
Harsanyi, J., and R. Selten. 1972. A generalized Nash solution for two-person bargaining games with incomplete information. Management Science 18: 80–106.
Hicks, J. 1932. The theory of wages. London: Macmillan.
Marshall, A. 1890. Principles of economics. 9th (variorum) edn, with annotations by C.W. Guillebaud. London: Macmillan, 1961.
Nash, J. 1950. The bargaining problem. Econometrica 18: 155–162.
Nash, J. 1953. Two person cooperative games. Econometrica 21: 128–140.
Roth, A. 1979. Axiomatic models in bargaining. Berlin: Springer.
Rubinstein, A. 1982. Perfect equilibrium in a bargaining model. Econometrica 50: 97–109.
von Stackelberg, H. 1934. Marktform und Gleichgewicht. Vienna: Julius Springer.
Wicksell, K. 1925. Mathematical economics. In K. Wicksell, Selected papers on economic theory, ed. E. Lindahl. Cambridge, MA: Harvard University Press, 1958.
Zeuthen, F. 1930. Problems of monopoly and economic warfare. London: Routledge & Kegan Paul.
Author information
Authors and Affiliations
Editor information
Copyright information
© 2018 Macmillan Publishers Ltd.
About this entry
Cite this entry
Friedman, J.W. (2018). Bilateral Monopoly. In: The New Palgrave Dictionary of Economics. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-349-95189-5_152
Download citation
DOI: https://doi.org/10.1057/978-1-349-95189-5_152
Published:
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-95188-8
Online ISBN: 978-1-349-95189-5
eBook Packages: Economics and FinanceReference Module Humanities and Social SciencesReference Module Business, Economics and Social Sciences