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Barriers to Exit
(redirected from Barrier to Exit)

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Barriers to Exit
Prohibitive costs associated with leaving a sector or market. For example, if a company operating in several sectors wishes to divest itself of its automotive interests, it may have a difficult time selling permanent assets or laying off workers because of high severance costs. Barriers to exit may discourage a company from divesting, or prevent it altogether. Barriers to exit are most common in sectors with high fixed costs.


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The receipted ticket will then be used to raise the barrier to exit the car park.
The portions of the capital investment that cannot be recovered, sunk costs, also create a barrier to exit (MacLeod, 1987; Kleindorfer and Knieps, 1982; Dixit, 1980; Bernheim, 1984).
 
 
 
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