If a strike or lockout occurs in a bilateral monopoly situation,it is usually because

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In a bilateral monopoly situation, both the monopoly employer and the monopoly union have some degree of market power. A strike or lockout may occur if one party misjudges the costs that can be inflicted on the other party. This misjudgment can happen due to incomplete information, strategic behavior, or other factors. For example, the union may think that the employer cannot withstand a long strike, while the employer may think that the union members cannot survive without a salary for an extended period. Such misjudgments can lead to prolonged conflicts that can harm both parties and the economy as a whole.

If a Strike or Lockout Occurs in a Bilateral Monopoly