Bilateral Monopoly

What does Bilateral Monopoly mean in American Law?

The definition of Bilateral Monopoly in the law of the United States, as defined by the lexicographer Arthur Leff in his legal dictionary is:

In economics, a situation in which an entire market consists of one seller and one buyer. Given the rarity of true monopoly in the real world, true bilateral monopoly is even rarer, perhaps nonexistent. As a theoretical construct, however, bilateral monopoly is interesting, especially for the light it may shine on a more common phenomenon, “bilateral oligopoly,” i.e., transactions in markets with few sellers and few buyers. Moreover, transactions between persons already tied to each other in some way (e.g., parties to a contract; joint participants in an automobile accident) tend to partake of many of the indicia of bilateral monopoly transactions, notably that there is no determinate solution to their conflicting claims, the “rational” end-point of their bargaining coming at any point between their respective positions depending on their relative bargaining power.