Exit, Voice, and Loyalty

Jason Furman Economics is largely the study of what the brilliant Albert Hirschman called ‘exit.’ If you don’t like a product, you stop buying it and instead purchase an alternative, exercising your ability to exit the product. Hirschman, however, points out that in society more broadly, and even in the economy specifically, ‘exit’ is not our only option—we also have voice. (Source)

Richard B Freeman What did Hirschman mean by exit and voice? Say you are in a restaurant and your soup is too salty. One option is too storm out. That’s exit. The other option is to call the waiter over and say, ‘Please bring the soup back and ask the chef to make it less salty.’ That’s voice. (Source)