What is bilateral oligopoly?

A bilateral monopoly/oligopoly is a situation where there is a single (or few) buyer(s) and seller(s) of a given product in a market. The level of concentration in the sale of purchase of the product results in a mutual inter-dependence between the seller(s) and buyer(s).

What is Oligopsony market?

An oligopsony is a market for a product or service which is dominated by a few large buyers. The concentration of demand in just a few parties gives each substantial power over the sellers and can effectively keep prices down.

What are the sources of oligopoly?

These are:

  • Large Investment of Capital: The number of firms in an industry may be small due to the large requirements of capital.
  • Control of Indispensable Resources:
  • Legal Restriction and Patents:
  • Economies of Scale:
  • Superior Entrepreneurs:
  • Mergers:
  • Difficulties of Entry into the Industry:

What is meant by oligopolistic interdependence?

In oligopolistic market however, it is necessary to consider the behaviour of competition while determining the output or price. Similarly, the competition will also base his decision on the behaviour of the first firm. In other words, all the firms in oligopoly are interdependent.

What is bilateral monopoly example?

An example of a bilateral monopoly would be when a labor union (a monopolist in the supply of labor) faces a single large employer in a factory town (a monopsonist). This example is from Wikipedia and may be reused under a CC BY-SA license.

What is bilateral monopoly in economics?

A bilateral monopoly exists when a market 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.

What is monopsony and oligopsony?

A monopsony consists of a market with a single buyer. When there are only a few buyers, the market is defined as an oligopsony. In general, when buyers have some influence over the price of their inputs they are said to have monopsony power.

What means oligopoly?

An oligopoly is a market characterized by a small number of firms who realize they are interdependent in their pricing and output policies. The number of firms is small enough to give each firm some market power.

What are the two types of oligopoly?

Types of oligopoly

  • Pure oligopoly. Pure oligopoly is also known as perfect oligopoly.
  • Imperfect oligopoly. Imperfect oligopoly is also known as differentiated oligopoly.
  • Open oligopoly.
  • Closed oligopoly.
  • Collusive oligopoly.
  • Competitive oligopoly.
  • Partial oligopoly.
  • Total oligopoly.

What is bilateral monopsony?

A bilateral monopoly exists when a market 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. The lone buyer will look towards paying a price that is as low as possible.