exit costs

"We hoped revenue would allow us to cover our exit costs."

The complication is that Premier will then have to fund material exit costs within tight cash constraints.

This assumption implies that there are low start up costs, no sunk costs and no exit costs.

The lower the exit costs for leaving the jurisdiction - unrestricted emigration, cheap travel, liquidity of assets - the more desirable and feasible it is.

Once an employee enters into a bonded relationships, they are characterised by asymmetry of information, opportunity, no time to search for alternative jobs and high exit costs.

It will fight by lowering its price, running the entrant out of business (and incurring exit costs - a negative payoff) and damaging its own profits.

Cypherpunks and crypto-anarchists also cite low exit costs and fluidity of movement across jurisdictions as a significant means of advancing individual freedom through the free movement of information and capital.

Implicitly, exit costs exceeded costs of entry, largely due to the sunk costs of contacts, reputation and privileged access to information on market movements (on the demand side) and expertise (on the cost side) built up over time.