Exit Voice and Loyalty Terms

Connoisseur Goods

A good wherein considerations of quality significantly outweigh matters of price. Connoisseurs will exit if there is a higher quality good and will only use voice if there is no higher quality option.

Voice

Any attempt to change, rather than exit from. An objectionable state of affairs, whether through individual or collective petition to the management directly in charge.

Exit

The ability/choice to leave the market due to dissatisfaction; an opting out behavior

Organizational Slack

The decline quality of a firm; dealt with voice or exit.

Substitutes

The degree to which people have alternatives in accessing resources.

Complimentary Voice

Voice used with threat of exit

Residual Voice

When an exit is possible, voice is the only remedial(remedy) option left.

Taut Economy Assumption

assumed a perfectly competitive market and perfect consumer information. If a firm's quality declines, consumers immediately leave for competitors and the firm would fail.

Surplus(Scarcity Paradox)

society as a whole produces a comfortable and perhaps steadily increasing surplus, but every individual firm considered in isolation is barely getting by, so that a single false step will be its undoing.

Slack Economy Assumption

the economy has a bit of slack to absorb moderate declines in quality and firms can adjust to mistakes/declines in quality. Markets aren't perfectly competitive and consumers aren't perfectly informed