Exit, Voice, and Loyalty: Responses to Decline in Firms

essentially describes the two dominant responses to declines in organizations (or decline in quality of products) of exit (leaving, or stopping to buy a product) ... Goodreadshelpsyoukeeptrackofbooksyouwanttoread. Startbymarking“Exit,Voice,andLoyalty:ResponsestoDeclineinFirms,Organizations,andStates”asWanttoRead: WanttoRead saving… WanttoRead CurrentlyReading Read Othereditions Enlargecover WanttoRead saving… Errorratingbook.Refreshandtryagain. Ratethisbook Clearrating 1of5stars2of5stars3of5stars4of5stars5of5stars OpenPreview SeeaProblem? We’dloveyourhelp. Letusknowwhat’swrongwiththispreviewof Exit,Voice,andLoyaltybyAlbertO.Hirschman. Problem: It’sthewrongbook It’sthewrongedition Other Details(ifother):   Cancel Thanksfortellingusabouttheproblem. ReturntoBookPage Notthebookyou’relookingfor? Preview—Exit,Voice,andLoyalty byAlbertO.Hirschman Exit,Voice,andLoyalty:ResponsestoDeclineinFirms,Organizations,andStates by AlbertO.Hirschman 4.13  ·  Ratingdetails ·  814 ratings  ·  81 reviews Aninnovatorincontemporarythoughtoneconomicandpoliticaldevelopmentlookshereatdeclineratherthangrowth.AlbertO.Hirschmanmakesabasicdistinctionbetweenalternativewaysofreactingtodeteriorationinbusinessfirmsand,ingeneral,todissatisfactionwithorganizations:one,"exit,"isforthemembertoquittheorganizationorforthecustomertoswitc Aninnovatorincontemporarythoughtoneconomicandpoliticaldevelopmentlookshereatdeclineratherthangrowth.AlbertO.Hirschmanmakesabasicdistinctionbetweenalternativewaysofreactingtodeteriorationinbusinessfirmsand,ingeneral,todissatisfactionwithorganizations:one,"exit,"isforthemembertoquittheorganizationorforthecustomertoswitchtothecompetingproduct,andtheother,"voice,"isformembersorcustomerstoagitateandexertinfluenceforchange"fromwithin."Theefficiencyofthecompetitivemechanism,withitstotalrelianceonexit,isquestionedforcertainimportantsituations.Asexitoftenundercutsvoicewhilebeingunabletocounteractdecline,loyaltyisseeninthefunctionofretardingexitandofpermittingvoicetoplayitsproperrole.Theinterplayofthethreeconceptsturnsouttoilluminateawiderangeofeconomic,social,andpoliticalphenomena.Astheauthorstatesinthepreface,"havingfoundmyownunifyingwayoflookingatissuesasdiverseascompetitionandthetwo-partysystem,divorceandtheAmericancharacter,blackpowerandthefailureof'unhappy'topofficialstoresignoverVietnam,Idecidedtoletmyselfgoalittle." ...more GetACopy AmazonOnlineStores ▾AudibleBarnes&NobleWalmarteBooksAppleBooksGooglePlayAbebooksBookDepositoryAlibrisIndigoBetterWorldBooksIndieBoundThriftbooksLibraries Paperback,176pages Published February1st1972 byHarvardUniversityPress (firstpublishedJanuary1st1970) MoreDetails... OriginalTitle Exit,Voice,andLoyalty:ResponsestoDeclineinFirms,Organizations,andStates ISBN 0674276604 (ISBN13:9780674276604) EditionLanguage English OtherEditions(6) AllEditions | AddaNewEdition | Combine ...LessDetail EditDetails FriendReviews Toseewhatyourfriendsthoughtofthisbook, pleasesignup. ReaderQ&A Toaskotherreadersquestionsabout Exit,Voice,andLoyalty, pleasesignup. BethefirsttoaskaquestionaboutExit,Voice,andLoyalty ListswithThisBook Politics 437books — 482voters TLSTheHundredMostInfluentialBooksSincetheSecondWorldWar 101books — 112voters Morelistswiththisbook... CommunityReviews Showing1-30 Averagerating 4.13  ·  Ratingdetails  ·  814 ratings  ·  81 reviews AllLanguagesEnglish‎(77) Magyar‎(1) Morefilters  |  Sortorder StartyourreviewofExit,Voice,andLoyalty:ResponsestoDeclineinFirms,Organizations,andStatesWriteareview Sep24,2020 Manny ratedit reallylikedit Shelves: linguistics-and-philosophy, the-goodreads-experience, well-i-think-its-funny, history-and-biography Iknowvirtuallynothingabouteconomics,soitsurprisedmetofindthattheideaswhichAlbertHirschmanadvancedinthisbookwereconsideredsonovelwhenhepublisheditin1970.Hirschmanlooksatmarketswhere"consumers"findthatthe"product"theyarecurrentlyusingissufferingaqualitydecline.Whatdotheydo?Theclassicalanswer,apparently,isthattheyshifttoacompetingproduct.Thissendsasignaltotheproviderofthedefectiveproduct;theyraisetheirgameandstoplos Iknowvirtuallynothingabouteconomics,soitsurprisedmetofindthattheideaswhichAlbertHirschmanadvancedinthisbookwereconsideredsonovelwhenhepublisheditin1970.Hirschmanlooksatmarketswhere"consumers"findthatthe"product"theyarecurrentlyusingissufferingaqualitydecline.Whatdotheydo?Theclassicalanswer,apparently,isthattheyshifttoacompetingproduct.Thissendsasignaltotheproviderofthedefectiveproduct;theyraisetheirgameandstoplosingcustomers,ortheygounderandarereplacedbyamoreefficientcompetitor.Eitherway,theironlogicofthemarketcorrectstheproblem.Hirschmanarguesconvincinglythatthisisfartoosimplistic.Consumerscanindeedabandontheproduct("exit").Butinreallife,theyoftendon'tjustgetout:instead,theystartcomplaining("voice"),inthehopethatdoingsowillhelptheproviderimprovethingsbeforetheconsumerneedstotakethefinalstepofexiting.Thecustomersaregenerallymotivatedbyareluctancetoleaveatonce("loyalty").It'ssurprisinghowmanyinterestingdirectionstherearetogofromthisinitialpoint.Herearetwothatcaughtmyattention,onefromthebookandonefrommyownexperience.Inthebook,Hirschmanasksustoconsiderthecaseofpoliticalparties,whichwe'llimaginearealignedalongaconventionalleft/rightaxis.Ifapartyhasbeendoingbadlyintermsofpickingupvotes,ananalysisjustintermsof"exit"suggeststhatitneedstomovenearertothecentre:thereasonit'slosingvotersarethatitspoliticsaretooextreme,soitshouldcorrectthat.Butinfact,politicalpartiesoftendotheexactopposite.Theylosevoters,andtheymovefurtherfromthecenter.Thereason,Hirschmansays,isthatpoliticalpartiespayagooddealofattentionto"voice"aswellas"exit";they'reworriedwhentheylosevoters,butthey'realsoworriedwhenthepartyactivistscriticisetheleadershiptoomuch.Theactivistswillusuallybethemoreextrememembers.Becausethey'reontheouteredge,they'rethepeopleleastlikelytodefecttotheopposition.Eventhoughtheyonlymakeupasmallproportionofthepeoplewhovotefortheparty,theycanoftenpushitinthedirectiontheywant.ItseemstomethatthisiswhathappenedintheUSin2015/16.Peoplefollowing"exit"reasoningwantedtomovetheGOPleftwards,toappealtomorecentristvoters.Butinfactitmovedright,andthiswassuccessfulatleastinpartbecauseitenergisedthefar-rightbase.ThecasefrommyownexperiencewaswhathappenedonGoodreadsin2013.Forpeoplewhocanrememberthedimprehistoryofthesite,therewasanunpleasantconfrontationbetweenGoodreadsmanagementandalargechunkofthemembershipovernewcensorshiprules.Somepeopledislikedthechangessomuchthattheyleft,usingtheir"exit"option.Butothers,includingmyselfandmanyothercorememberswhovaluedtheironlinecommunity,didn'tjustwanttogiveup.Weorganisedhighlyvisiblecounteractions,culminatinginthereleaseoftheprotestbook Off-Topic ,anditcertainlyseemedtousthatthisiswhathadaneffect:"voice"wasmorepowerfulthan"exit".Therewasneveranyofficialannouncement,butthenewruleswerequietlyabandoned.IsHirschman'sbookjustobviouscommonsense?Itseemedtomethatitwas.ButIguessthat'soneofthehallmarksofareallygoodnewidea.AsThomasKuhnsays,youcan'tevenmanagetoreconstructwhatyouwerethinkingbeforeitenteredyourconsciousness.______________________[Andtheverynextday...]It'sinterestingtoreadthisrecentarticlefromaHirschmanpointofview.IsBidenbeingtooexit-focussed?______________________[ButonNov152020...]Withalltheresultsin,itlookslikeBidencalleditright:movingtothecenterwasawinningstrategyhere.Hepickedupmoderatewhitevoterswho'dchangedtheirmindsaboutsupportingTrump'sextreme-rightpoliciesandflippedfivestates. ...more flag 54likes · Like  · seereview Viewall15comments Aug06,2017 MortenGreve ratedit reallylikedit Thisisoneofthoserarebooksthat-despitetheirdeceptivesimplicity-containsafundamentalandtimelesstruth.Hirschman'sessentialargumentis(1)thateconomicandpolitical/sociologicalanalysiscanachievemuchmoreincombinationthanasseparateundertakings;(2)thateconomictheoryhasignoredthevitalquestionofquality(asopposedtopriceandquantity).Bothvalidpoints.Hissimpleyetpowerfulanalyticalframeworkexploreshowqualitydeteriorationcanbestbeadressedthr Thisisoneofthoserarebooksthat-despitetheirdeceptivesimplicity-containsafundamentalandtimelesstruth.Hirschman'sessentialargumentis(1)thateconomicandpolitical/sociologicalanalysiscanachievemuchmoreincombinationthanasseparateundertakings;(2)thateconomictheoryhasignoredthevitalquestionofquality(asopposedtopriceandquantity).Bothvalidpoints.Hissimpleyetpowerfulanalyticalframeworkexploreshowqualitydeteriorationcanbestbeadressedthroughaninterplaybetweentheforcesofexit(customersandmembersleavetheorganization),voice(quality-consciouscustomersandmembersseektoredresstheproblemsfromwithin),andloyalty(themechanismthatmakescustomersandmembers"stickitout"andperformvoicetothelong-termbenefitoftheorganizationdespitethereadyavailabilityofalternatives).Ifoundoneofhisexamplesparticularlyilluminating:TheAmericanpublicschoolsystemhasadysfunctionalexcessofexitofquality-consciousfamiliesleadingtoadrainageoftheverypeoplethatwouldmakeeffectivevoicepossible.Hencethesystemislockedinadownwardspiralofdeterioratingquality.ItisnotmyimpressionthatthisdynamchaschangedinanymajorwaysinceHirschmanwrotehisbook.Infact,wehaveasimilardevelopmentinDenmarkrightnow. ...more flag 7likes · Like  · seereview Dec25,2021 LucasGelfond ratedit likedit  ·  reviewofanotheredition readforRebootEVLbookclub!alittlebitdry/tooecon-yformytastes+Ithinkyoucangetmostofthecontentofthisbookfromwikipedia/summariesbuttheideasinhereareprettyinteresting.essentiallydescribesthetwodominantresponsestodeclinesinorganizations(ordeclineinqualityofproducts)ofexit(leaving,orstoppingtobuyaproduct)andvoice(attemptingtoadvocateforchange).loyalty(mostlyseparate)isformulatedhereasatattachmentwhichmakespeoplemorelike readforRebootEVLbookclub!alittlebitdry/tooecon-yformytastes+Ithinkyoucangetmostofthecontentofthisbookfromwikipedia/summariesbuttheideasinhereareprettyinteresting.essentiallydescribesthetwodominantresponsestodeclinesinorganizations(ordeclineinqualityofproducts)ofexit(leaving,orstoppingtobuyaproduct)andvoice(attemptingtoadvocateforchange).loyalty(mostlyseparate)isformulatedhereasatattachmentwhichmakespeoplemorelikelytovoicevs.exit.Ithoughtinitiallythatthecombinationofexiting/voicingwithconsumerproductsandorganizationswassortofbizarre(andstilldo)buthirschmanndoesaprettygoodjobofexploringhowtheydiffer.generallyfoundthesecondhalfofthismoreinteresting/compellingbutingeneralIthinkEVLisareallycompellingframeworkfordescribinginteractionsw/orgsandalotofexamples/conceptsfromherewilldefstickwithme ...more flag 4likes · Like  · seereview Dec28,2021 MatthewSun ratedit reallylikedit firsthalfofthebookisveryecon-y,andingeneralIthinkthebookusesalotofeconjargonthatisnotparticularlyusefulfortheaveragereaderwhowantsacomparisonofexit&voiceasmechanismsforexpressingdissent/providinginstitutionalfeedback.secondhalfofthebookhasmoreinterestingpoliticaltheory+provocativeideasaboutexitastheclassicAmericanaction,forexample.minus1starforwhatIfeltwasalackofclarityinthewriting-thereweresomanycounterexample firsthalfofthebookisveryecon-y,andingeneralIthinkthebookusesalotofeconjargonthatisnotparticularlyusefulfortheaveragereaderwhowantsacomparisonofexit&voiceasmechanismsforexpressingdissent/providinginstitutionalfeedback.secondhalfofthebookhasmoreinterestingpoliticaltheory+provocativeideasaboutexitastheclassicAmericanaction,forexample.minus1starforwhatIfeltwasalackofclarityinthewriting-thereweresomanycounterexamplesandmultiplewaystointerpretthingsthatitwassomewhateasytogetlost,Iwishtheauthorhadzoomedbackoutmorefrequentlyandre-statedthemainclaimsconciselythroughouteachchapter! ...more flag 3likes · Like  · seereview Dec28,2021 Archana ratedit reallylikedit Firsthalfisdryandreadingasummaryofthemainconceptstherewouldsuffice.Ienjoyedthesecondhalfalot-theexit,voice,loyaltyframeworkisusefulandIlikedtheconcreteandtheoreticalexamplesgiven.Maybeunsurprisingbutkindofamazinghowwelltheseconceptsstillholdupandhowmuchclaritytheyprovideonorganizational,work,andgovernanceissues-theconceptsareagreatjumpingoffpointfordiscussionsofwhistleblowing,evaluating“changefromtheinside,”psychol Firsthalfisdryandreadingasummaryofthemainconceptstherewouldsuffice.Ienjoyedthesecondhalfalot-theexit,voice,loyaltyframeworkisusefulandIlikedtheconcreteandtheoreticalexamplesgiven.Maybeunsurprisingbutkindofamazinghowwelltheseconceptsstillholdupandhowmuchclaritytheyprovideonorganizational,work,andgovernanceissues-theconceptsareagreatjumpingoffpointfordiscussionsofwhistleblowing,evaluating“changefromtheinside,”psychologicalattachmentstowork/institutions,etc. ...more flag 3likes · Like  · seereview Apr28,2020 M ratedit reallylikedit Presentsasurprisinglypowerfulsetofsimpleconceptualtools(“exit”,“voice”,“loyalty”)andusesthemtoanalysethedeteriorationandrecuperationoffirmsandnon-firmorganisations.Especiallyenjoyedthechaptersontwo-partysystemsandthebook’sthoroughengagementwithquestionsofpoliticalorganisation.Ahealthyanddynamicbalancebetweenexitandvoiceseemstobeideal.Abruptexitcandestabilisemarkets,permitinertiaandincompetence,and—atworst—abdicatethefightagains Presentsasurprisinglypowerfulsetofsimpleconceptualtools(“exit”,“voice”,“loyalty”)andusesthemtoanalysethedeteriorationandrecuperationoffirmsandnon-firmorganisations.Especiallyenjoyedthechaptersontwo-partysystemsandthebook’sthoroughengagementwithquestionsofpoliticalorganisation.Ahealthyanddynamicbalancebetweenexitandvoiceseemstobeideal.Abruptexitcandestabilisemarkets,permitinertiaandincompetence,and—atworst—abdicatethefightagainst“evil”.Thevoice,too,canbeneutralisedthroughinstitutionalisation,orresultindisturbedradicalisation(commiserationstowhat’sleftofthe“moderate”wingoftheRepublicanparty.)Loyalityactsasasortofbrakeonexitinordertogiveorganisationstimetoaddressdysfunction.ThescopeofHirschman’sbookisbroad.I’mcurrentlyworkingthroughCarlSchmitt’swritings;thisprovidesanicecompliment.(Thepictureiscomplicatedwhenyoukeepinmindthedynamicpoliticallandscape.RadicalismisrelativetotheOvertonwindow.Butthisisaneconomist’sbook:thevalueofamodelisthatithasusefulapplications,notthatitexplainsallphenomena.)Forthepessimistically-minded,thisbookprovidesacertainframeworktoviewtheintractabilityoftheclimate“question”through.Theindustrialsystemhasdomesticatedvoice(“Yes,climatescientists,protestgroups,environmentally-mindedconsumerscanofcoursevoicetheirconcerns,aslongastheystaywithintheboundsofsensiblediscourse.Somebodyneedstospeaktruthtopower...”)andneutralisedexit—lookatwhatbecomesofthosewhoattempttoexistontheperipheryifapipelineneedsbuildingoraforestneedsclearing.Subsequently,civilisation(respondingneithertovoicenorexit)existsasatotalitarianorganisation.Noneofthisisnecessarilysurprising,butitstronglychallengesthenaïvetéofthepoliticalscientist’sfaiththatthesystemwillrationallyself-correcttoavertdisaster.Intheend,exitisfortherichandvoiceisforthepoor.Thecapitalistsquietlybuildtheirbunkersassocietyfracturesintothebellumomniumcontraomnes. ...more flag 3likes · Like  · seereview View1comment Dec07,2011 FrankStein ratedit itwasok Idon'tknowwhereIreadorhowIheardthatthiswasamind-blowingread,butthebookhasbeenonmyshelfforeverandIkeptmeaningtogetaroundtoitwhenIhadthechance.Thereshouldhavebeennorush.Thebookismercifullyshort,moreofaphilosophicalpamphletthananythingelse,anditpresentsitselfaswhatwasthen(in1970)asurprisingspeculativeforaybyaneconomistintopoliticalscience.Inthisbook,Hirschmancomparesandcontraststwostrategiestodeclineinaproduct Idon'tknowwhereIreadorhowIheardthatthiswasamind-blowingread,butthebookhasbeenonmyshelfforeverandIkeptmeaningtogetaroundtoitwhenIhadthechance.Thereshouldhavebeennorush.Thebookismercifullyshort,moreofaphilosophicalpamphletthananythingelse,anditpresentsitselfaswhatwasthen(in1970)asurprisingspeculativeforaybyaneconomistintopoliticalscience.Inthisbook,Hirschmancomparesandcontraststwostrategiestodeclineinaproductorinapoliticalorganization,eitherleaving(stoppurchasingtheproductorexittheorganization)orfighting(complainingaboutaproductorvoicingone'sconcernaboutanorganization).Usingthelanguageofeconomicsheshowsthattheseoptionscanbeeithercomplementsorsubstitutesatdifferenttimes,andhedoesmakeaconvincingcasethateconomistsandpoliticalscientistshaveignoredhowtheseoptionscaninteracttosurprisingeffect.Forinstance,theexitofwealthyconsumerstosomecompetingcompaniescanparadoxicallystrengthenamonopoly,sinceitmeanstheexitofthosemostlikelytovoicecomplaintsaboutamonopoly'spower.Healsomakestheinterestingpointthatwhileeconomistsinthepasthavefocusedonpricecompetition,theyhaveignoredtheeffectsofquality,andthatdeclinesinthequalityofaproduct(orinthenatureofanorganization)mayhavecontradictoryeffectstotheonepredictedbyeconomictheory.Sowhilemarginalconsumersmaystopusingaproductfirstafteraslightpricerise,moreaffluentandevenmoreattachedconsumersmayleaveorcomplainaboutaproductfirstuponaslightdeclineinquality.Mostlythough,thebookisalotofpoliticalspeculationwithlittleevidence(whichHirschmanevencottonstoattimes),combinedwithsomehalf-heartednodstooncefashionablepsychologicaltheories.Intheend,thisisprobablymoreinterestingasapieceofintellectualhistorythananythingelse. ...more flag 3likes · Like  · seereview View1comment Dec12,2012 NickKlagge ratedit reallylikedit Shelves: economics Thislittlebookhasbeenonmyto-readlistforawhile,butIwasfinallypromptedtopickitupbytherecentdeathofAlbertHirschman.I'mverygladIdid.Theconceptsof"exit"and"voice"havepercolatedintocultureenoughthatIwentintothebookkindoffeelinglikeIalreadyknewwhatitwasabout,andinasenseIdid.Nonetheless,Ireallyenjoyedreadingit.Hirschmanisasupremelyclearthinkerandwriter.Whenhemakesanargument,heusuallyrefrainsfromemployingequations, Thislittlebookhasbeenonmyto-readlistforawhile,butIwasfinallypromptedtopickitupbytherecentdeathofAlbertHirschman.I'mverygladIdid.Theconceptsof"exit"and"voice"havepercolatedintocultureenoughthatIwentintothebookkindoffeelinglikeIalreadyknewwhatitwasabout,andinasenseIdid.Nonetheless,Ireallyenjoyedreadingit.Hirschmanisasupremelyclearthinkerandwriter.Whenhemakesanargument,heusuallyrefrainsfromemployingequations,buthisexpositionissoclearthatIcantellhecouldwriteouttheequationsifhewantedto(andhesometimesdoes,intheappendix),andIcanseetheoutlinesofthemmyself.IstronglyrecommendedthisbooktoElisebecause,eventhoughitwaswrittenquitesometimeago,ithasmanydirectapplicationtocurrentdebatesoverpubliceducation,manyofwhichHirschmanevendiscussesexplicitly.Iimaginealmostanyonewouldfindapplicationstotheirlivesortheirareasofinterest. ...more flag 2likes · Like  · seereview Dec06,2021 RishabhSrivastava ratedit reallylikedit Thiswasainterestingstudyoferrorcorrectionmechanismsthatarepresentinafirm,andtheimplicationsofthosemechanisms.Shortbutsuperdense(writteninthe1960s/70sandusesarcanelanguageandsentencestructures).Wouldrecommendreadingtoanyoneinterestedinunderstandingbusinesses–butspeciallyifyou’reinterestedinunderstandingtwo-sidedplatforms/marketplaces(wherethepresenceofmultiplepartiesiscriticallyimportanttothevalueofaplatform).Ifyou’reshorton Thiswasainterestingstudyoferrorcorrectionmechanismsthatarepresentinafirm,andtheimplicationsofthosemechanisms.Shortbutsuperdense(writteninthe1960s/70sandusesarcanelanguageandsentencestructures).Wouldrecommendreadingtoanyoneinterestedinunderstandingbusinesses–butspeciallyifyou’reinterestedinunderstandingtwo-sidedplatforms/marketplaces(wherethepresenceofmultiplepartiesiscriticallyimportanttothevalueofaplatform).Ifyou’reshortontime,justreadChapters1,2,3,andthefirsthalfofChapter7andfigureouttheirimplicationsyourselfMymaintakeawayswere:1.Whenstakeholdersofaserviceareunhappywithit–theyhave3choices:switchovertoanotherservice,voicetheircomplaintstomanagement,orsufferinsilence2.Managementbecomesawareofanabsoluteorrelativedeteriorationinqualityifuserscomplaintothemorifthereisadropinrevenue.Withoutthesemechanisms,itcanbedifficultformanagementtoevenknowwhat’sgoingwrongandsolveforit3.Inmarketswherecompetingservicesareeasilyavailable,customerscanjustleavewithouttellingmanagementwhy.Thisresultsinalossofvaluablelearningopportunities.Managementcanknowthatsomethingiswrong,butmightnotknowexactlywhat.Andifmanagementdoesn’tcareaboutdecreasingrevenues(likegovernmentmanagedairlinesorrailways),alackofcustomersthatwould’veotherwise“raisedhell”leadstocrappierproducts4.Inculcating“loyalty”–analmostirrationalfeelingofattachmenttoanorganization–isareallyimportanttoolformanagementincompetitivemarkets.Ifcustomersareloyal,theyaremorelikelytovoicetheirdiscontentbeforechoosingthe“exit”option–thereforegivingmanagementvaluablefeedbackonhowtoimproveaproduct5.Listeningtowhatcustomersaresaying–beforetheyeventhinkaboutexiting–andimprovingproductsbasedonthatbecomessuperimportantforbusinessesoperatingincompetitivemarkets.Thesameappliesforpoliticalparties,sportclubs,andotherorganizations ...more flag 1like · Like  · seereview May25,2021 SethBenzell ratedit likedit There’sagrainoftruthatthebottomofthiswhichisimportant—ifinstitutionsarerivenbyinternaldynamics(ratherthanbeingunifiedoptimizers)ANDifconsumers/membersaren’tatomizedrationalizers(i.e.theyhavepowerfulroles/buyingpowerorarewillingtosacrificethemselvesforacause)thenitcancertainlyhappenthatinternalpressurecampaignscausechange.Forsometypesofinstitutionsthisisanimportantdynamic(intermsofcausalpower,notnecessarilyforgood),andi There’sagrainoftruthatthebottomofthiswhichisimportant—ifinstitutionsarerivenbyinternaldynamics(ratherthanbeingunifiedoptimizers)ANDifconsumers/membersaren’tatomizedrationalizers(i.e.theyhavepowerfulroles/buyingpowerorarewillingtosacrificethemselvesforacause)thenitcancertainlyhappenthatinternalpressurecampaignscausechange.Forsometypesofinstitutionsthisisanimportantdynamic(intermsofcausalpower,notnecessarilyforgood),andinsomenot.WhatIdisagreewithistheideathatinthatparticularrangethemostusefulwaytothinkoftheclashesbetweenpersonalitiesandpowerbasesistheconceptof“voice”.Abetterconceptforwhatisgoingonmightbe“force”.Butbothareimprecise.Iknowtheauthorwouldblamemytraining,butIworryaboutanysingleconcept’spowertoexplainthestrangeindeterminaterangebetweencompetitionandcompletechaos.ThelittleknowledgeofgametheoryIhavesuggestsa‘folktheorem’thatinrepeatedgamesofthistype,almostanythingcango,givenstartingbeliefs.Andhumanswillbelieveanything!ButmaybeI’moverclaimingonbehalfoftheAuthor.Thisisaniceconceptandmechanismhere-introduces,butnotanearthshatteringone.,OkpgoodoverallbutI’mleftwithabunchofquestions:>whyfirmsshould“care”aboutvoicefromsomeonewhowillneverexitisunclear>clearlyisabehavioralanalysis(whyvoiceandnotfreeride?)butHreallywantstomakethisseemlikemoreofarationalprocess>ifvoicecanhappenfromoutside,whysuchanemphasisonthedichotomy>notenoughofadistinctionbetweentheatomizedsituationsandthemarket/bargainingpowersituations>onpage100Hisincorrectthatloyaltyisneededtopreserveequilibriainpositiveexternalitytootherusersinstitutions(I.e.stableplatformsdefexist)Thisisinadditiontomylingeringconcernthatmoststuffpeople“voice”overarenotobjectivegoodsbutcontroversialpreferences.Ifthat’struethenmostvoiceisjusttitfortatwastesofenergyAlsohedoesn’ttakeastanceonwhetherhippiesaregoodornot(althoughheisstronglyanti-vietnam)!Takeastand! ...more flag 1like · Like  · seereview May21,2020 JacobCutts ratedit reallylikedit Interesting,butlongerthanitneededtobe.IdecidedtoreadthisbookbecauseIhadheardaboutthecoreargumentofthepaper:aninvestigationofthetwomainwaysthatpeopleexertpressureoncompaniesandorganizations,exitandvoice.Thatwasenoughtoenticemeintoreadingit.Hirschmandoesagoodjobofelaboratingontheargument,thoughIdon'treallyfeelthatIneededtoreadawholebookonthesubject--ajournalarticlelength(20-30pages)wouldhavebeensufficienttocom Interesting,butlongerthanitneededtobe.IdecidedtoreadthisbookbecauseIhadheardaboutthecoreargumentofthepaper:aninvestigationofthetwomainwaysthatpeopleexertpressureoncompaniesandorganizations,exitandvoice.Thatwasenoughtoenticemeintoreadingit.Hirschmandoesagoodjobofelaboratingontheargument,thoughIdon'treallyfeelthatIneededtoreadawholebookonthesubject--ajournalarticlelength(20-30pages)wouldhavebeensufficienttocommunicatetheargumentwithasufficientamountofnuanceforme.Ialsofounditsometimesdifficulttogetthrough,partlybecauseit'sanacademicbook,butmorespecificallyanacademicbookfrom50yearsago.Theextensivereferencestolate-60sUSpoliticswereinteresting,andprettyclearlydatedthebookinthatregard.OverallI'mnotsureifI'dnecessarilyrecommendit--findsomesolidsummariesofhisargumentonline,andthatwouldgiveyou95%oftheimportantinformationfromthebook. ...more flag 1like · Like  · seereview View2comments Jul22,2021 Kevin ratedit likedit Introducesinterestingandpromisingconcepts,butlargelyfailstodeveloporexploreanyoftheminanythingmorethanahandwavyway. flag 1like · Like  · seereview Mar09,2019 Gavin markeditasto-read Shelves: econ, stats Casual,briefandwittytheoreticaleconomics.Actuallyaunificationofeconomics,politicalscience,andthisotherthing.Theproseisdeceptivelyplain,likesayAnscombe.There'sbasicallynodata,it'sallintuitionpumps.(ButIsharemostofhisintuitions,whichsurprisedme.)Somekeypremises:*Nonmarketforcesmatter.*Dissenthelpsus.Itisextremelyrichdataforanyonewhocaresaboutdoinggoodwork,andsolasting.*Iftherewereonlyrational(criticalanddisloyal)custome Casual,briefandwittytheoreticaleconomics.Actuallyaunificationofeconomics,politicalscience,andthisotherthing.Theproseisdeceptivelyplain,likesayAnscombe.There'sbasicallynodata,it'sallintuitionpumps.(ButIsharemostofhisintuitions,whichsurprisedme.)Somekeypremises:*Nonmarketforcesmatter.*Dissenthelpsus.Itisextremelyrichdataforanyonewhocaresaboutdoinggoodwork,andsolasting.*Iftherewereonlyrational(criticalanddisloyal)customers,theeconomywouldcollapse.*Exit(marketpressure)andVoice(nonmarketpressure).*(TODO(...))I'veneverseensuchaclearanalysisofnonmarketforces-andsinceIfindthemuglyandhopelesstrapsforactivists,it'sgoodtobechallenged.Hecracksopenamassiveneglectedtopic:wehadstudiedmacroeconomicslack(depressions,whereyourwholesystemissuddenlysluggishandunresponsive)extensively,butnotmicroeconomicslack-Whydon'tfirmsmaximiseoutput,inhealthymacroregimes?Becausethey'remadeofindividualswhodon't?Becauseofinternalconflictrequiringsuboptimalcompromises?Becauseitservesalatentfunction?There'salsoasurprisingfocusonsocial/personaldecay-theideathatournewproductivepowerallowsforanunprecedentedrangeofdecadence,failures,mutationload...There'scertainlysomeevidenceforthat.Butalsoselection-as-repairandpost-traumaticgrowth: Firmsandotherorganisationsareconceivedtobepermanentlyandrandomlysubjectedtodeclineanddecay.Thisradicalpessimism,whichviewsdecayasanever-presentforceconstantlyontheattack,generatesitsowncure;foraslongasdecayishardlyinundisputedcommandatalltimes,itislikelythattheveryprocessofdeclineactivatescertaincounter-forces. Readitslowly.Ifounditreallyclear,butIdon'tknowifthat'sbecauseI'malreadyfairlygroundedineconomics.Hehasatouchingprideinpoliticalscience,ina1950sApollonianway,andmuchofthiscriticiseseconomists'costlybiasinfavourofexit:Ihopetodemonstratetopoliticalscientiststheusefulnessofeconomicconceptsandtoeconomiststheusefulnessofpoliticalconcepts.Thisreciprocityhasbeenlackinginrecentinterdisciplinaryworkaseconomistshaveclaimedthattheconceptsdevelopedforthepurposeofanalyzingphenomenaofscarcityandresourceallocationcanbesuccessfullyusedforexplainingpoliticalphenomenaasdiverseaspower,democracyandnationalism.Theyhavethussucceededinoccupyinglargeportionsoftheneighbouringdiscipline.Hasthefieldsincedonemuchtovindicatethispride?ThebestargumentagainstExit,whichIusuallyfavour,isthatitspeedsupanddeepensagroup'sdecay:thepeoplewhogetsickofdramaandthenleavearelikelytobethemorethoughtfulandvirtuous.Worthseriousstudy,butifallyoutakefromthisreviewistakingbothmarketandnonmarketforcesseriously,andthinkingaboutwhentouseeach,thenit'sstilllikelytobesomehelp. ...more flag 1like · Like  · seereview Nov13,2016 AdrianS ratedit itwasamazing Thebooklooksattheeconomicincentivesofdissent,characterizingconsumersasagentswhohavedifferentlevelsofemotionalinvestmentinthequalityofaproductoraservice(theproductcanalsobemembershipinanorganization,suchasastateorareligion),andwhoreacttorandomqualitylapsesinthemarketviatwomainchannels:(a)exit(switchingtoacompetitor),and(b)voice(complaining,becomingpoliticallyengaged,andcampaigning).Thebreak-evenpointbetweenthetwoisin Thebooklooksattheeconomicincentivesofdissent,characterizingconsumersasagentswhohavedifferentlevelsofemotionalinvestmentinthequalityofaproductoraservice(theproductcanalsobemembershipinanorganization,suchasastateorareligion),andwhoreacttorandomqualitylapsesinthemarketviatwomainchannels:(a)exit(switchingtoacompetitor),and(b)voice(complaining,becomingpoliticallyengaged,andcampaigning).Thebreak-evenpointbetweenthetwoisinfluencedbyloyalty,whichinsomecasesoforganizations,suchasfamily,nation,orevenreligion,areforcedupontheconsumeraprioriviaprohibitiveexitcosts.Thissoundslikenothingnew,andasimplisticmodel,butthenoveltycomesnext.Ithinkthebookisquiteadeptatexplaininghowavery"taughteconomy",suchasamaximally-competitive[free]market,cangettrappedinnegativefeedbackloopswherecompetitioneliminatesfirstthemobilecustomerswhocaremostaboutquality,leavingbehindthosecustomerswhomanifestinertia(quality-priceplasticity)andfailtoprotestenoughinordertosalvagetheorganizationfrombadmanagement.Ithinkthisapproachadvocatesfora"slackeconomy",wherereserveproductivitycanbeimplementedcheaplytocounterdissentforcesonper-needbasisinordertoavoidbacklash.Thebookalsoexplainsthecircumstancesunderwhichhighamountsofcompetitionpushtheequilibriumpointofthemarkettowardslesscompetitiveproducts,whichgoesagainstwhatnormallygetstaughtintheChicagoschoolofthought.Ontheotherhand--andthismightbemoretimely--thebookattemptstoexplainwhathappenswhenthequalityoftheproductgoesdown,butmonopolisticphenomenaaffectingloyalcustomerswhoalwayschoosevoiceoverexit(usuallythoseconsumerswithnoescape,suchasvotersinatwo-partysystem)clashwiththemoremobilequality-elasticconsumersandwiththeprofit-guidedincentivesoftheorganizationasawhole,loweringoverallperformance.Itwasquitecool,andit'sonly130pageslong.Whetheryouagreewithitornot,itshouldbeintellectuallychallenging(oratleast,itwasforme). ...more flag 1like · Like  · seereview Jun30,2018 VincentLi ratedit itwasamazing Ararebookthatisbothinsightfulandlessthantwohundredpages.Imissthedayswhen"serious"booksgotbytheircontentandnotbytheirlength.Originallyrecommendedtomebyafreshmanyearprofessor,Exit,VoiceandLoyaltyisaclassicforagoodreason.IwasrecentlyremindedofitwheninConLaw.Exit,voiceandloyaltymadeasurpriseappearanceinBruceAckerman'sarticleabouttheroleofexitandCaroleneProductsfootnote4(if"exit"fromunpopularminoritiesistooeasy,i Ararebookthatisbothinsightfulandlessthantwohundredpages.Imissthedayswhen"serious"booksgotbytheircontentandnotbytheirlength.Originallyrecommendedtomebyafreshmanyearprofessor,Exit,VoiceandLoyaltyisaclassicforagoodreason.IwasrecentlyremindedofitwheninConLaw.Exit,voiceandloyaltymadeasurpriseappearanceinBruceAckerman'sarticleabouttheroleofexitandCaroleneProductsfootnote4(if"exit"fromunpopularminoritiesistooeasy,itmakesitdifficultorganizeactivism.Whileitseemslikeitwouldbeadisadvantagetobeclearlyidentifiableasaminority,theabilityto"cover"comeswithitsownproblems).Someoftheexamplesandpoliticsareabitoutdated,andHirshmanclearlyhashispoliticalsympathies(RalphNadergetsafewhonorablementions,asdoesEugeneMcCarthy),butthisbookisworthreadingforthetimelessprinciplesHirshmanarticulatesaswellasthebreadthandcreativitythathebringstoeconomics.Thebasicideaofthebookisthattherearetwomajorresponsestodeclinesinfirmsororganizations.Thefirstisexit,"votewithyourfeet"tostopbuyingtheproductortoquittheorganization.Thesecondisvoice,toraisearuckusbyprotest.Hirshmannotesthateconomiststendtothinkofexitastheexclusiveresponse,whilepoliticalscientiststendtofocusonthevoicemechanism.InHirshman'smodel,firmsfacerandomqualitydeteriorationthatiscorrectableifmanagementrespondstoeitherexitorvoice.Hirshmanmakestheinterestingnotethatformanagementtorespondandcorrect,exitcannotbetoofastortooslow,sinceaggressiveexitwouldleadtothecollapseofthefirmbeforeresponse.Exitalsofailstocorrectfirmdecline,iftheconsumerjustaimlesslycyclesthroughwhataresubstantiallythesamefirms(someradicalsarguethatpoliticalpartiesallowthestatusquothroughexactlythismechanism.Votersunhappywithonepartyexititandswitchtoanother,onlytobedisappointedandso-on,wheninfacttheproblemisthesystemitself).Voicecanbearesidualtoexit,insomesituations(suchasmonopolyorinautocracies)itmaybepossiblethatexitisimpossible,andvoiceistheonlyresponse.Voicecanalsobeasubstitutetoexit,consumersmayprotestbeforetheystopbuyingaproduct.Voiceisalsomorecomplicatedinthatmembersofanorganizationandconsumersmustconsiderthechancethattheirvoicewillbeeffective,andtheworthwhilenessofacorrectioncomparedtothecertaintyofanotherexistingproduct.Forthatreason,organizationalmembershipsandmajorpurchasesarelikelytobeplaceswherevoiceisusedasasubstitutetoexit.Themostinterestingpartsofthebookcomefromtheinteractionsbetweenexitandvoice.Aspecialdifficultyisthattheconsumersthataremostqualityconscious(consumersprobablyfacedifferentutilitiesfromdifferentqualitylevels,makingitimpossibletotranslatequalitytoeffectivepricedecreases)andthusinthebestpositiontoexercisevoicetoalertmanagementtofailurearealsothemostlikelytoexitinresponsetoadeclineinquality,leavingthefirmtocontinuetodecline.TheexamplesthatHirshmanusesareinteresting,fromNigerianrailroads(theywerebadatthetimebecausebeingpubliclyfunded,managementwasnotsensitivetoexit,andthealternativesofcarsallowqualitysensitiveconsumerstoexittherailroad),toshareholderswhoquicklysellinsteadofprotestingtomanagement(nolongerstrictlytrue,withtheriseofactivistshareholders.InasenseHirshmananticipatesthis,ashementionsthattheremaybewaystomakethevoicemechanismmoresuccessful/lesscostly).Hirshmanevenarguesthatinsomecases,monopolieswanttocreateanexitoptiontoriditselfoftroublesomeprotestors,therebymakingevencompetitionatoolofmonopolies.AfascinatingchapterisHirshman'sanswertothefailureofthemediumvotertheorem.Themediumvotertheorempredictsthatallpoliticalpartiesmovetowardsthecenterinordertomaximizethenumberofvoters.Hirshmannotesthefailureofthismodelwhenpoliticalpartiesconsistentlyproduceextremecandidates.Hirshman'sansweristhatthepartymaynotberesponsivetoedgevoterswhoexitthepartyifthepartymovesontheidealogicalspectrum,butmoreresponsivetothe"captive"membersofthepartywhovoice.Thesecaptivememberstendtobeideologueswhowant"purer"candidates.Thereisalengthychapteronloyaltythatexploressomeinterestingideasaswell.Hirshmanmentionsthatloyaltymaybeusefulbecauseitslowstheexitofmembersandconsumers,givingfirmsachancetocorrecttheirdecline.Loyaltymanycaseconsumers/memberstobelesssensitivetoinitialdeclinebutmorewillingtousevoicethanotherspastacertainthreshold.Aloyalist'sthreattoexitisacombinationofvoiceandexit,andorganizationsthatmakeitimpossibletothreatenexit(thatpenalizethreatsofexitwithdeathforexample)collapsequickly.Finally,Hirshmandiscussessituationswhereloyalistscannottrulyexittheorganization,thereforeturningtheirdecisiontoexitintobalanceoftheshameofstayinginanorganizationandthechanceofreforming"fromtheinside".ThechapteronapplyingtheconceptstoAmericanpoliticsisalittledatedbutstillthoughtful.HirshmannotesthattheUSisacountryformedoutofthosewho"exited"othersocieties.Oneofthemostthoughtprovokingargumentsinthischapterwasthathighachievingminoritiestendedtoexittheirculturalgroup,deprivingthatgroupofthosemostabletousevoicetoprotesttheinjusticestowardsthatminority.Hirshmannotesinthebook,thatwasthereasonthatpoliticalmovementshadbeenfocusingongroupupwardmobilityratherthanindividualupwardmobility.Hirshmanendsthebookwiththenotethatorganizationsmayhavevaryingresponsestoexitandvoice.Thatleadstothesimpleconclusionthattofixmuchdecline,stepsshouldbetakentoeithermaketheorganizationmoresensitivetoexistingvoiceorexitormakeiteasierforvoice/exittocomeout.However,theremightnotbeastableoptimalmixofvoice/exitbecausethosemechanismsarealsosubjecttodecline(HirshmangivestheexampleofLBJadministrationinstitutionalizingdissent,keepingmajorplayersfromresigningandaffectingpolicybyallowingthemto"airtheirconscience").Inshort,highlyrecommendedreading. ...more flag Like  · seereview Dec27,2012 Elise ratedit likedit IreadthisbookonNick'sstrongrecommendation(andluckyme,Ialsobenefitedfromhismarginalia).Hehadpitchedittomeasaneconomist'sveryclearrenderingoftheinterplayamong"exit,voice,andloyalty,"ideasextremelyapplicabletocontemporaryeducationreform.IactuallyfoundHirschmantobealittlebitdifficulttofollow-butthat'swithmyhighschool-levelofeconomicsknowledge.Iwas,though,intriguedbyHirschman'suseofschoolchoiceasanillustrationof"exit"(le IreadthisbookonNick'sstrongrecommendation(andluckyme,Ialsobenefitedfromhismarginalia).Hehadpitchedittomeasaneconomist'sveryclearrenderingoftheinterplayamong"exit,voice,andloyalty,"ideasextremelyapplicabletocontemporaryeducationreform.IactuallyfoundHirschmantobealittlebitdifficulttofollow-butthat'swithmyhighschool-levelofeconomicsknowledge.Iwas,though,intriguedbyHirschman'suseofschoolchoiceasanillustrationof"exit"(leavinganorganization/institutionwhenitsqualitydeclines)and"voice"(makingafussinanefforttoencouragequalityimprovement).WhenHirschmantalksaboutschoolchoice,heisprettymuchonlytalkingaboutthechoicetooptoutofpublicschoolsbysendingyourkidstoprivateschoolinstead.But,Ithinkthenotionsofexit,voice,andloyaltyalsoverymuchapplytotoday'sever-growingcharterschoolmovement.HistoriansofAmericaneducationpolicywillalmostalwaysdiscusseconomistMiltonFriedman'sseminalessay"TheRoleofGovernmentinEducation,"butHirschman,too,is,Ithink,animportanteconomistforcurrenteducationresearchers,reformers,andpolicymakerstounderstand. ...more flag 1like · Like  · seereview Jul13,2017 JaredTobin ratedit likedit Thecentralideasdevelopedinthisbook-'exit','voice',and'loyalty'-aretremendouslyusefulforreasoningaboutthenatureanddynamicsoforganizations.Thebookitself--evenatitsmeagrelength--feltfartoolong.Thecruxoftheideascansimplybeexplainedmore-than-adequatelyinahandfulofpages(theWikipediaarticlewillsuffice,really).ThebookdidaddafewobservationsthatIfoundimprovedmythinkingonthesubject.Theexplicitassertionthat'exit'tendstocrowdo Thecentralideasdevelopedinthisbook-'exit','voice',and'loyalty'-aretremendouslyusefulforreasoningaboutthenatureanddynamicsoforganizations.Thebookitself--evenatitsmeagrelength--feltfartoolong.Thecruxoftheideascansimplybeexplainedmore-than-adequatelyinahandfulofpages(theWikipediaarticlewillsuffice,really).ThebookdidaddafewobservationsthatIfoundimprovedmythinkingonthesubject.Theexplicitassertionthat'exit'tendstocrowdout'voice'isinterestingandseemsaccurate;'exit'tendstobeusedfirstbythosewhowouldtendtobemoreeffectiveintheapplicationof'voice',whichdiminishesthepowerof'voice'inpractice.Theanalysisof'loyalty'(inthepresentHirschman-iansense-basically,somepreferencefor'voice'over'exit')wasalsobetter-developedinthebookthanI'veseenelsewhere.Hirschmancharacterizessituationswhereorganizationstendtoexperiencehighlevelsof'loyalty'-in'primordialhumangroupings'suchasthefamilyortribe,aswellasinotherorganizationswherethereexisthighentryfeesandhighexitpenalties.Oneshouldcertainlybecomeacquaintedwiththeideasofexit,voice,andloyalty.Thisbookitselfisweaklyrecommended. ...more flag 1like · Like  · seereview Aug09,2015 DanielLovins ratedit reallylikedit Thisreviewhasbeenhiddenbecauseitcontainsspoilers.Toviewit, clickhere. Basedonwhatatfirstappeartobethreeoverly-simpleconcepts:"Exit","Voice",and"Loyalty",Hirschmanmanagestomodelandilluminateawiderangeofphenomenafromthedomainsofeconomics,politics,andmanagement.Someofthedebatesragingatthetimehisbookwaspublished(late1960s,early70s)seemjustasaliveandunresolvedtoday,e.g.,whetherpublicschoolvouchers(aformofExit)shouldleadtohigherperformancethroughcompetitionorlowerperformancethroughsiphoningoff Basedonwhatatfirstappeartobethreeoverly-simpleconcepts:"Exit","Voice",and"Loyalty",Hirschmanmanagestomodelandilluminateawiderangeofphenomenafromthedomainsofeconomics,politics,andmanagement.Someofthedebatesragingatthetimehisbookwaspublished(late1960s,early70s)seemjustasaliveandunresolvedtoday,e.g.,whetherpublicschoolvouchers(aformofExit)shouldleadtohigherperformancethroughcompetitionorlowerperformancethroughsiphoningoffthebeststudents.Hirschmandoesn'targuesimplyforincreasedVoice(i.e.,loyaldissent)attheexpenseofExit(i.e.,switchingsides),butrathercallsonthereadertoavoidbecomingtoocomfortablewitheitherapproach.The"centralpointofthebook"(p.42)appearstobethatoneshouldn'tgettoocomfortablewitheitherdominantmode(i.e.,Exitforeconomics;Voiceforpolitics).Rather,itisoftenthelesser-used,less-automaticmodeofengagementthatleadstopositiveorganizationalchange. ...more flag 1like · Like  · seereview Oct04,2016 Sarah,HighLadyoftheCourtofFeels ratedit itwasok Shelves: boring, odd-man-out, grad-school, economics Alright...soatriskofsoundinglikesomeuneducatedvisagoth(sp?),I'mgivingthisawhooping2-stars.WhileIappreciatestream-of-consciousnesstheoryasmuchasthenextguyinconversation,Idon'tmuchappreciateitwhenit'sinbookformandisnotveryinsightful/surprisingandspends100+pagesrehashingthesamething.Idon'tknowifthisismoreoutdatedthananything,butIwasn'tveryimpressed.Backwhenthiswaspublished,however,I'msureitmademoreofanimpression.SorryH Alright...soatriskofsoundinglikesomeuneducatedvisagoth(sp?),I'mgivingthisawhooping2-stars.WhileIappreciatestream-of-consciousnesstheoryasmuchasthenextguyinconversation,Idon'tmuchappreciateitwhenit'sinbookformandisnotveryinsightful/surprisingandspends100+pagesrehashingthesamething.Idon'tknowifthisismoreoutdatedthananything,butIwasn'tveryimpressed.Backwhenthiswaspublished,however,I'msureitmademoreofanimpression.SorryHirschman! ...more flag 1like · Like  · seereview May28,2013 RogerLohmann ratedit reallylikedit Thisisoneofthosequietclassicsofsocialscienceandshouldbefamiliartoeverystudentoforganizations,policy,communityorpublicaffairs.Hirshman'ssensibleargumentisthatwhenfacedwithadecisionorpolicyyoudisagreewithordoubt,youcanleave(exit),disagree(voice)orbeagoodfollowerandgoalongquietly(loyalty).Goodreadsalsoshowsa46pageReconsiderationofHirschman'stextbyUlrichArnswald,butI'venotbeenabletotrackitdown. Thisisoneofthosequietclassicsofsocialscienceandshouldbefamiliartoeverystudentoforganizations,policy,communityorpublicaffairs.Hirshman'ssensibleargumentisthatwhenfacedwithadecisionorpolicyyoudisagreewithordoubt,youcanleave(exit),disagree(voice)orbeagoodfollowerandgoalongquietly(loyalty).Goodreadsalsoshowsa46pageReconsiderationofHirschman'stextbyUlrichArnswald,butI'venotbeenabletotrackitdown. ...more flag 1like · Like  · seereview Apr23,2021 Lee ratedit reallylikedit aneconomictheoryofhowadysfunctionalinstitutionmightdeclineorimproveduetoitspatronsexercisingtwoimportantpowersattheirdisposal:exitandvoice.exitcanmeanstopattendingmeeting,buyingfromacompetitor,switchingpoliticalparties,oremigratingfromacountry.voicecanmeanpubliclycriticizing,leavingreviews,writingletters,lobbyingforachangeinleadership,callingforregulation.exitisthepoweraneconomistusuallytalksabout.exitmakessenseundercondi aneconomictheoryofhowadysfunctionalinstitutionmightdeclineorimproveduetoitspatronsexercisingtwoimportantpowersattheirdisposal:exitandvoice.exitcanmeanstopattendingmeeting,buyingfromacompetitor,switchingpoliticalparties,oremigratingfromacountry.voicecanmeanpubliclycriticizing,leavingreviews,writingletters,lobbyingforachangeinleadership,callingforregulation.exitisthepoweraneconomistusuallytalksabout.exitmakessenseunderconditionsofperfectcompetition,whererivalproductsarenearlyidentical.customersswitchfrombuyingyouralmondmilktothecompetitor's,deprivingyourdecliningfirmoftheirrevenue.voiceissomethingeconomiststalkaboutless,politicalscientistsmore.thisisbecausevoicemakessensewhenthereissomeloyaltytotheinstitutionandexitisnotanoption:thinkofapoliticalparty,acountry,aclub.sofarsointuitive,andthisiseverythingiknewabouthirschman'sideasonthistopicbeforereadingthebook.thatbasicconceptsconstitutethefirstthirdorsoofthebook.butbeinganeconomist,hirschmanwantstoexplainhowvoicecanalsobythoughtaboutineconomicterms.voicemakessensewhencompetitionisimperfect.importantly,henotesthatevenforasinglefirmtheavailabilityofcompetitionisrelativetocharacteristicsofthatfirm'scustomers,whichmayvary.customersmayvaryintheirsensitivitytoquality:someare"alert"andothersare"inert."andthemorealertcustomersvaryamongthemselvesintheparticularqualitiestheyappreciate:thesearethe"connoisseurs".theconnoisseursmayfindfewrivalproductstoswitchtobecausetheirtastesaretoodiffuseforeconomies-of-scaletokickinandensureatautcompetitivemarket.andifexitisnotfeasiblefortheconnoisseurs,theywilltendtousevoiceinstead:groaning,writingletters,callingfornewregs,etc.thismeansthatfirmsmaybemoreinfluencedbyexitpowersatlowerendofqualityscaleandmoreinfluencedbyvoiceattheupperend.somuchforthebasiceconomicargument.butthisisn'tprimarilyabookaboutbusiness;itsaboutallkindsofinstitutions,andhowthistradingoffbetweenexitandvoiceamongpatrons/memberscanariseandwhattheeffectswillbe.afewapplications:*amongpoliticalpartiestheideologuesarelesslikelytoexitthanthecentrists,whichmeansradicalsaremorelikelytousevoice.that'sinterestingbecauseitcutsagainsttheconclusionsofmedianvotermodelthatsayspartieswillmoderateandendupnearlyidentical.*ascountriesmoveupthetechnologicalladder,theybecomemoresimilartoeachother.thisallowsthetalentedtoemigrate,diminishingtheirvoicewithinthecountry.country-loyalistswillthereforeseektocurbthebraindrain,reinforcingmonopolysoastoampofthepowerofvoicetohelpthosewithlessmarketabletalents.*theblackpowermovementrejectsexitviaindividualbootstrappingsuccessstoriesforsimilarreasons:keepthepowerfulvoicesneededtobringaboutsocialjustice.*apresidentialadministrationmayhavedissentersinitsranksexercisingvoicetonoeffect.thisisacasewheremoreexitmightbebetter:danielellsberg'sdeparturecitedasgoodexampleduringvietnamwar.thisbookismoretheoreticalandquantitativethanhirschman'stwootherbestknownbooks:rhetoricofreactionandhispassionsandinterests.thosewerehistoriesofideas.pageforpagetheothertwobooksaremorepleasantandinsightfulreads,butthisoneisunderstandablymoreinfluentialbecausetheanalysishereismorewidelyapplicable.afinalnoteonform:ilovethathirschmanincludeslittletablesthatsummarizethemainargumentsandclassificationsattheendofthisbookandrhetoricofreaction.it'sadmirablymodestandread-friendlytoboilalongandsubtleargumentdowntoacoupletableswithdimensionscorrespondingvaluesofthemainvariablesinplayandcellspopulatedwithillustrativeexamples.morewritersshoulddothis. ...more flag Like  · seereview Apr06,2021 João ratedit itwasamazing Shelves: non-fiction, entrepreneurship, mental-models, politics, economics Excellent!Veryusefulmentalmodelthatcanbeappliedtocompanies,publicorganizations,countries,relationships,younameit.Whenaproduct(genericallyusedword)decreasesinquality,peoplecancomplainaboutit-Voice-orswitchtoadifferentproduct-Exit.Thisisasuperbasic(inretrospect)premise,butthebookexploresinterestingconsequencesthatcomefromthis.Anexcerpt:>Supposeatsomepointthepublicschoolsdeteriorate.Thereupon,increasingnumbersofquality-educa Excellent!Veryusefulmentalmodelthatcanbeappliedtocompanies,publicorganizations,countries,relationships,younameit.Whenaproduct(genericallyusedword)decreasesinquality,peoplecancomplainaboutit-Voice-orswitchtoadifferentproduct-Exit.Thisisasuperbasic(inretrospect)premise,butthebookexploresinterestingconsequencesthatcomefromthis.Anexcerpt:>Supposeatsomepointthepublicschoolsdeteriorate.Thereupon,increasingnumbersofquality-education-consciousparentswillsendtheirchildrentoprivateschools.This"exit"mayoccasionsomeimpulsetowardanimprovementofthepublicschools;buthereagainthisimpulseisfarlesssignificantthanthelosstothepublicschoolsofthosemember-customerswhowouldbemostmotivatedanddeterminedtoputupafightagainstthedeteriorationiftheydidnothavethealternativeoftheprivateschools.Afewinterestinginsightsallpackedinoneparagraph:1.Thosewhodon'tExitbecausetheycan'tgettheshortendofthestick2.SomepeopleExitquickerthanothers,someVoicetheiropinionsmoreeasily3.SomeinstitutionsreactmoretoExitthanVoice,andvice-versa(thisisimpliedbyotherexamplesthatcouldcometomind,liketheExitingofabigwiginapoliticalparty)Oneinsightthat'snotinthisexamplebutbecomesclearasthebookadvancesisthatonemethodofdissentbecomesmostcommoninanorganizationand,thus,theorganizationbecomesmoreresilienttoit.Becauseit'sthemostcommon,theothermethodbecomesriskierandlessused.Thatis,untilthe"legacy"methodisnolongereffective,andthewholethingflips:someoneExits,whenbeforealltheydidwasVoice.Thewholethingbecomesevenmoreinterestingwhenappliedtopolitics/society,especiallyintoday'scontextwherethemonetarysystemisbeingExitedbysomeintoBitcoinetc.,whereentrepreneursareExitingSF,wherebigpersonalitiesinmediaareExitingtopmediacompaniesandstartingsubstacks,podcasts,etc.Recommended👌 ...more flag Like  · seereview Dec25,2021 RohanDalvi ratedit likedit Skimmed,sotakewithagrainofsalt-thoughtthisseemslikethetypeofacademictreatisethatisparticularlyaptforskimming.HonestlyHirschman'sideasarenotamazinglycomplexorevensuperinsightfulinmyopinion,butIsupposethereisvalueinhisformalizingthem.BasicallyhenotesthatthemodelofperfectcompetitionisincorrectinthatIRLfirmsdeviatefromperfectperformanceonquality,andnotonlydotheydeviate,theyalsosurvivethedeviation.Thisisbecausetherear Skimmed,sotakewithagrainofsalt-thoughtthisseemslikethetypeofacademictreatisethatisparticularlyaptforskimming.HonestlyHirschman'sideasarenotamazinglycomplexorevensuperinsightfulinmyopinion,butIsupposethereisvalueinhisformalizingthem.BasicallyhenotesthatthemodelofperfectcompetitionisincorrectinthatIRLfirmsdeviatefromperfectperformanceonquality,andnotonlydotheydeviate,theyalsosurvivethedeviation.Thisisbecausethereare'recuperativemechanisms'whichgetthemtoimproveinquality-oneis'exit',inwhichcustomersleavingsendsthemasignaltoimprove,andtheotheris'voice',inwhichcustomersavocateforqualityimprovement.Hemakessomeinterestingconjectures-forinstance,thepowerofvoiceriseswhenbackedbyacrediblethreatofexit.However,exitmakesvoiceunlikelytohappen.Moreover,'loyalty'(customers/organizationmemberswholiketostay),feelcompelledtousevoiceratherthanexit;moreempoweredcustomers/membersarealsomoreloyal.Moreover,thisframeworkcanbeusedtothinkaboutchangeinallsortsoforganizations,includingbusinesses,politicalparties,unions,clubs,etc.Fromanaestheticperspective,itisaninterestingbridgebetweentheeconomicsofoldwhichresembledphilosophicalwriting,andthemoremathematicalandpolicy-orientedeconomicsofthemodernday.Therearesomeamountofgraphsaswellasrealworldcasestudies,butthebookconsistsprimarilyofqualitativetheoriziing.ThreestarsbecauseIfeltlikethoughthebookwasshortitwasnotveryconcise.ItwasalsohonestlynotasthoughtprovokingasIexpectedittobe.IsupposeHirschman,likeAdamSmith,mightbeathinkerwhoseinsightsnowseemtrivialandalmostobvious,butatthetimemighthavebeenverycounterintuitiveandsignificant(?) ...more flag 1like · Like  · seereview View1comment Jul19,2018 MichaelLewyn ratedit itwasamazing hortbutnotsimplediscusssionofhowvariousorganizationscanchange.Mostbusinessorganizationsrelyonexit-thatis,thethreatofcustomersexitingmaycausebusinessestorespondtomarketforces.Politicalandreligiousorganizationsaremorelikelytorelyonvoice-thatis,members'abilitytoargueforchangewithintheorganization.Loyaltyencouragespeopletostaywithintheorganizationratherthanleaving.Hirschmanapplieshistheorytosomereal-worldsituations.Forexample, hortbutnotsimplediscusssionofhowvariousorganizationscanchange.Mostbusinessorganizationsrelyonexit-thatis,thethreatofcustomersexitingmaycausebusinessestorespondtomarketforces.Politicalandreligiousorganizationsaremorelikelytorelyonvoice-thatis,members'abilitytoargueforchangewithintheorganization.Loyaltyencouragespeopletostaywithintheorganizationratherthanleaving.Hirschmanapplieshistheorytosomereal-worldsituations.Forexample,whydopoliticalpartiesbecomemoreextremeevenwhenitspartisanshavenoalternativechoice?Hirschmanexplainsthateventhoughthethreatofexitmayencouragepartiestomovetothecenter,thevoicesofactivistsmayencouragepartyelitestofollowtheextremistsinordertoavoidhassles,andthatelitesmaybeunsurewhethercateringtoactivistswillinfacthaveharmfuleffects.Hirschmanalsodiscussescaseswhereexitisunlikelytoreformorganizations.Forexample,theflightofwell-offparentstosuburbsorprivateschoolshasfailedtoreformurbanschoolsystems,becausethe(oftenaffluent)peoplewholeavearetheonesmostlikelytoexercisetheirvoice. ...more flag Like  · seereview Nov13,2019 Jeremy ratedit itwasamazing Thisisafantasticlittlebook.Hirschmanmakestheobviousinretrospectobservationthatorganizationswhichlosequalitycanbeinfluencedbybothexit(customersswitchingcompanies,membersnolongerattendingandpayingdues)andbyvoice(peoplecomplaining).Thereareanumberofreallyinsightfulobservationsabouttheimplicationsofconsideringbothexitandvoice.Manyofmyfavoriteconsidertheheterogeneityofgroupmembersandtheinteractionbetweenthesetwooptions.Forexampl Thisisafantasticlittlebook.Hirschmanmakestheobviousinretrospectobservationthatorganizationswhichlosequalitycanbeinfluencedbybothexit(customersswitchingcompanies,membersnolongerattendingandpayingdues)andbyvoice(peoplecomplaining).Thereareanumberofreallyinsightfulobservationsabouttheimplicationsofconsideringbothexitandvoice.Manyofmyfavoriteconsidertheheterogeneityofgroupmembersandtheinteractionbetweenthesetwooptions.Forexample,inmanyconditionsthequality-consciousconsumerswhoaremostaffectedbyadecreaseinqualityarealsothefirsttoleave.Therefore,thosewhoremaintoexercisevoicearethosewhocareless.Theseleadtointerestingparadoxes.Forexample,insomeconditionsanineptpublicagencyormonopolistmayprefersomecompetition.Ifmembershaveanalternativethentheywillnotstickaroundtocomplain.Thebookcontainsanumberofinsightfulapplicationsoftheideasintherealmsofpoliticsandpublicpolicyaswellasaccessibleformalmodelsofmanyoftherelationshipsdiscussed.Inowunderstandwhythisbookhasbeensogenerativeandinfluential. ...more flag Like  · seereview Dec29,2021 NicholasAdeyi ratedit likedit  ·  reviewofanotheredition Shelves: capitalism-political-econ InterestinginsofarasitprovidesframeworksforthinkingthroughhowExit,Voice,andLoyaltyfunction/interactindifferenttypesoforganizations(e.g.competitivefirms&politicalparties)acrossdifferentmarketorpoliticalstructures(e.g.monopolies,perfectcompetition,two-partysystems,totalitarianregimes).128pagesofreadilydigestibleeconomictheorybolsteredbyhistoricalexamplesandanecdotes.CulminatesintheconcessionthattheoptimalmixofExitandVoicedependsont InterestinginsofarasitprovidesframeworksforthinkingthroughhowExit,Voice,andLoyaltyfunction/interactindifferenttypesoforganizations(e.g.competitivefirms&politicalparties)acrossdifferentmarketorpoliticalstructures(e.g.monopolies,perfectcompetition,two-partysystems,totalitarianregimes).128pagesofreadilydigestibleeconomictheorybolsteredbyhistoricalexamplesandanecdotes.CulminatesintheconcessionthattheoptimalmixofExitandVoicedependsonthecontext-which,oktrue,butfeelslikeaweakending.WhatIreallywantedwascasestudiesof'successfulapplications'ofthetheory,oratleastofinstitutionswhosedesignprovidesforagenerativemixofExitandVoice.Tobefairthesemightexist:Ijusthaven'tlookedyet.DiscussingHirschman'sframeworksasagroupmadetheexperiencemuchmoreworthwhile;I'lldefinitelybetryingtoapply/identifyExitandVoiceelsewhere.Overallthisfallsintothe'thought-provoking'categorybutimocouldhavebeenanessayofafewthousandwordsinsteadof128pages+appendices.Irushedthroughsoit'sprobably4starsforthepeople,3starsfromme... ...more flag Like  · seereview May29,2021 Rolando ratedit itwasok Ifyouareleadinganorganisation,thisbookmayhelpyoutomeasureitsdecaybasedonexitandvoice.Exit,measuredasthedifferencebetweenexitingandincomingcustomers,istheclassicaleconomiccluefordecayorsuccess.Voice,slightlyhardtomeasureandreferringtotheabilityofpeopletoshowdiscontent,givesyouanothersignofdecay.But,howmuchattentionshouldbepayingtovoice?That'swhatthisbookanalysesinvarioussituations.TheexamplesIrememberfromthebookar Ifyouareleadinganorganisation,thisbookmayhelpyoutomeasureitsdecaybasedonexitandvoice.Exit,measuredasthedifferencebetweenexitingandincomingcustomers,istheclassicaleconomiccluefordecayorsuccess.Voice,slightlyhardtomeasureandreferringtotheabilityofpeopletoshowdiscontent,givesyouanothersignofdecay.But,howmuchattentionshouldbepayingtovoice?That'swhatthisbookanalysesinvarioussituations.TheexamplesIrememberfromthebookarebasedonadysfunctionalmarket,suchasaduopolyorapublicrailwaycompanycompetingagainstprivatetrucks.Inthosecases,Exitmaynotbenefitthecustomerafterall.So,perhaps,thekeyistorecognisewhetherthemarketisdysfunctionalfirst,thenpayattentiontoVoice.Thebookalsoexplainsinwhichsituationsclientsmaychoosetostayloyaltoaninferiorproduct,iftheyaregiventhechancetovoicetheirdiscontent.ButIfoundthispartlessinteresting. ...more flag Like  · seereview Feb13,2018 Rebecca ratedit likedit Shelves: non-fiction, political, social-science Thisisclassiceconomicsthatbecomesusefulforthelaymanwhenappliedtosituationswhereoneisdissatisfiedwithaproduct,acompany,acountry,apoliticalparty,areligion,evenafamily.Doesonetakeoffwhenthereseemstonolongerbeanybenefitorqualitythereforthem?Doesonefileacomplaint,orspeakout,orprotestwhileremainingwithin?Whatisthebestwaytofindimprovementandprogressfororganizationsthatareunwillingtomakechanges?Especiallyorganizationswherei Thisisclassiceconomicsthatbecomesusefulforthelaymanwhenappliedtosituationswhereoneisdissatisfiedwithaproduct,acompany,acountry,apoliticalparty,areligion,evenafamily.Doesonetakeoffwhenthereseemstonolongerbeanybenefitorqualitythereforthem?Doesonefileacomplaint,orspeakout,orprotestwhileremainingwithin?Whatisthebestwaytofindimprovementandprogressfororganizationsthatareunwillingtomakechanges?Especiallyorganizationswhereinyouhaveinvestedaportionofyourlife,yourtime...thoseyoutrulycareabout?Theargumentsforeacharelaidoutandproperlydissected,withafinalconclusionthatoptionswillvarycasetocase,buttheEconomistisn'tagainstaproperstrategicambush.Onceyougetusedtotheterminology(initially,Ihadtodosomegoogling),thetheoriesarestraightforward,andHirschmanmovesyouthroughhisideasinanorganizedandconcisemanner.Thisisn'tforeveryone,butIfoundthediscussionthought-provokingandpossiblyusefulfordealingwithadministrationswherefleeingthecountryisn'tanoption.*mumblesunderbreath ...more flag Like  · seereview Mar06,2020 DioMavroyannis ratedit reallylikedit Shelves: wtr-econ-law, wtr-history ThisisquiteaspecialbooktomebecauseitwasgiventomebymysupervisorformyPHDdefense.Isuspectthemainreasonhegaveittomeisthatittouchesupononeofmychapterswhichincludesdiscussionsofnetworkvalue,goodswhosevalueincreaseswiththenumberofusers.Thebookitselfisveryinterestingfrombothaneconomicsandpoliticalphilosophybackground.However,Ifoundthatthediscussionwasoftenunclear,theappendixdoesn'thelpmuch,itseemstomelikeafewequati ThisisquiteaspecialbooktomebecauseitwasgiventomebymysupervisorformyPHDdefense.Isuspectthemainreasonhegaveittomeisthatittouchesupononeofmychapterswhichincludesdiscussionsofnetworkvalue,goodswhosevalueincreaseswiththenumberofusers.Thebookitselfisveryinterestingfrombothaneconomicsandpoliticalphilosophybackground.However,Ifoundthatthediscussionwasoftenunclear,theappendixdoesn'thelpmuch,itseemstomelikeafewequationswouldhaverenderedthewholethingmuchmorerobust.ThereisverylittlediscussionofhowafirmCHOOSINGhowmuchvoicecanincreaseitsvalue.Indeed,forsomereason,heseemssettousetheframeworktoattacktheoptionofexit,whichmakesthisenterpriselessaccurateandmorepolitical. ...more flag Like  · seereview Jul15,2019 BrianHanley ratedit reallylikedit Solidbookwithalotofthought-provokingpoints.Notlightsummerreadinghowever.Writtenover40yearsagothequestionsraisedandtheideasfloatedabsolutelyholdwatertoday.Really,reallyinterestingstuff.IparticularlyenjoyedtheconclusionastheauthorbalancestheeffectofexitandvoiceontheAmericanexperimentwhich(asispointedout)onlyexistsasafunctionofexit.Thebookisshortintermsofpagecountbutgiveitsomespace.Thisisnotonetoberushedthrough. flag Like  · seereview «previous123next» newtopicDiscussThisBook Therearenodiscussiontopicsonthisbookyet. Bethefirsttostartone» Share RecommendIt  |  Stats  |  RecentStatusUpdates Readersalsoenjoyed Seesimilarbooks… Genres Economics 103users Nonfiction 51users Politics 46users Business 39users Sociology 22users Politics> PoliticalScience 19users Philosophy 18users Academic> School 7users History 6users Psychology 5users Seetopshelves… AboutAlbertO.Hirschman AlbertO.Hirschman 91 followers AlbertOttoHirschmanwasaneconomistandtheauthorofseveralbooksonpoliticaleconomyandpoliticalideology.Hisfirstmajorcontributionwasintheareaofdevelopmenteconomics.Hereheemphasizedtheneedforunbalancedgrowth.Hearguedthatdisequilibriashouldbeencouragedtostimulategrowthandhelpmobilizeresources,becausedevelopingcountriesareshortofdecisionmakingskill AlbertOttoHirschmanwasaneconomistandtheauthorofseveralbooksonpoliticaleconomyandpoliticalideology.Hisfirstmajorcontributionwasintheareaofdevelopmenteconomics.Hereheemphasizedtheneedforunbalancedgrowth.Hearguedthatdisequilibriashouldbeencouragedtostimulategrowthandhelpmobilizeresources,becausedevelopingcountriesareshortofdecisionmakingskills.Keytothiswasencouragingindustrieswithmanylinkagestootherfirms.Hislaterworkwasinpoliticaleconomyandthereheadvancedtwoschemata.Thefirstdescribesthethreebasicpossibleresponsestodeclineinfirmsorpolities(quitting,speakingup,stayingquiet)inExit,Voice,andLoyalty(1970).Theseconddescribesthebasicargumentsmadebyconservatives(perversity,futilityandjeopardy)inTheRhetoricofReaction(1991). ...more BooksbyAlbertO.Hirschman More… News&Interviews6GreatBooksHittingShelvesThisWeek Needanotherexcusetotreatyourselftoanewbookthisweek?We'vegotyoucoveredwiththebuzziestnewreleasesoftheday. Tocreateour...Readmore...16likes·1comments TriviaAboutExit,Voice,and... Notriviaorquizzesyet.Addsomenow» Welcomeback.JustamomentwhilewesignyouintoyourGoodreadsaccount.