Definition: Exit Option

Exit Option - "the leaving of a group or withdrawal of membership when dissatisfied with a group or organization yet unable to effect change. A specific manifestation of “exit” is the decision not to buy a product of a firm when dissatisfied, leading to a shift to that of another and thus perhaps spurring the management of the firm to search for ways to correct whatever faults have led to an exit. In economics, the term was coined by Albert Hirschman." - source: Economic Development 4th Edition by E. Wayne Nafziger