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Bilateral monopoly


A market situation in which a single seller, a monopoly, is faced by a single buyer, a monopsony. In such a market it is only possible to determine the equilibrium price and quantity traded as a range or set of possible outcomes, in the absence of further analysis of the bargaining process itself. It is the latter which will determine the precise point in the set of possible outcomes - which vary of course in their attractiveness to the parties - that will finally be achieved.

Reference: The Penguin Dictionary of Economics, 3rd edt.