15/04/2014

Exit, Voice, and Loyalty, and Spotify

O.k., I'll admit I've never read Hirshleifer's book, but I'm wondering. In the last post I describe how you can react to the Spotify relaunch, which makes the product considerably worse, by switching back to, and remaining on, an older version of the software, using a trick not approved by Spotify (subverting the auto-update function). In Hirshleifer's scheme, what is this? The post itself can, I guess, be interpreted as voice, but what I (and many others) do cannot. It is exit, sort of, because I exit the use of the current software, as envisioned by the company, but then, it's not, but rather loyalty, because I remain a paying customer. Should Hirshleifer have called his book Exit, Voice, Loyalty, and Creative Adjustment?

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