Exit (economics)

Exit, in economics, means opting out of future transactions.^[1]

Overview

A firm can secure its ability to exit, for instance, by only agreeing to contracts that contain a clause that allows for termination on terms it feels would be acceptable. In constitutional economics, it implies a right of secession. However, a citizen seeking simply to avoid paying income taxes can also exit by emigrating to a country with more favorable laws, assuming such a country exists and allows their immigration.

Exit strategy

Exit can also refer to exit strategy, for a business leaving a market or an owner selling up.

See also

• Dollar voting
• Exit, Voice, and Loyalty
• Foot voting
• Jurisdiction shopping

References