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What are Barriers To Exit?

 , updated on November 17, 2015
Barriers to exit are obstacles to closing a business or discontinuing a product or service. In some cases, firms keep operating a business because it's too expensive to exit.
Overview: Barriers To Exit
TypeEconomics
DefinitionObstacles to discontinuing a product, service or business.
ExamplesCosts related to reducing staff numbers such as early retirement.
Environmentally responsible disposal of plants, equipment and stock.
The cost of wrapping up contractual obligations to customers, suppliers, partners, bond holders and other stakeholders.
White elephant assets are are difficult to sell or decommission.
Related ConceptsWhite Elephant
Barriers To Entry

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Added Value
Advanced Economy
Adverse Selection
Animal Spirits
Arbitrage
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Resources
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Superior Goods
Supply
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Sustainable Economics
Switching Barriers
Threat Of Substitutes
Trade War
Traditional Economy
Unsought Goods
Value Creation
Veblen Goods
Zero-sum Game
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Economic Theories

A list of economic theories that are particularly useful for business.

Adverse Selection

The tendency for people at high risk to buy insurance.

Economic Advantage

A list of economic positions or capabilities that allow you to outperform in a particular industry.

Knowledge Work

A definition of knowledge work with examples.

Production

A definition of production with examples.

Post Scarcity

An overview of post-scarcity.

Economic Infrastructure

The common types of economic infrastructure.

Business Competition

The common types of business competition.

Inefficiency

The common types of inefficiency.

Supply Examples

An overview of supply with common examples.

Alpha vs Beta

The difference between two common investment measurements.

Regression Toward The Mean

An overview of Regression Toward The Mean.

Efficient Market Hypothesis

An overview of the Efficient Market Hypothesis.

Animal Spirits

An overview of animal spirits, a theory of investing.

Financial Markets

A definition of financial market with examples.

Mr Market

A definition of Mr. Market, an investing theory.

Organic Growth

A definition of organic growth with examples.

Concept Company

The common types of concept company.

Information Costs

A definition of information costs with examples.

Channel Check

The definition of channel check with examples.
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