David Choo

Although the main purpose of an egg crate is to contain the light, on larger frames it also tends to even out the brightness of the light as you move toward the light source. As you move closer to the light source, the fabric cells occlude progressively more of the diffusion surface. The egg crate effectively reduces the exposure range in the acting space by reducing the rapid increase of brightness, what DPs like to call sourceyness. Close to the source, the egg crate opposes the inverse square law.
David Choo
When you go closer to an egg crate, it starts to block the light from the sides, reducing brightness on the talent and therefore opposing the inverse square law
Set Lighting Technician's Handbook: Film Lighting Equipment, Practice, and Electrical Distribution
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