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Trouble in Store: Probes, Protests, and Store Openings by Wal-Mart, 1998-2007

The authors consider how uncertainty over protest occurrence shapes the strategic interaction between companies and activists. Analyzing Wal-Mart, the authors find support for their theory that companies respond to this uncertainty through a "test for protest" approach. In Wal-Mart's...

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Bibliographic Details
Published in:The American journal of sociology 2010-07, Vol.116 (1), p.53-92
Main Authors: INGRAM, Paul, QINGYUAN YUE, Lori, RAO, Hayagreeva
Format: Article
Language:English
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Summary:The authors consider how uncertainty over protest occurrence shapes the strategic interaction between companies and activists. Analyzing Wal-Mart, the authors find support for their theory that companies respond to this uncertainty through a "test for protest" approach. In Wal-Mart's case, this consists of low-cost probes in the form of new store proposals. They then withdraw if they face protests, especially when those protests signal future problems. Wal-Mart is more likely to open stores that are particularly profitable, even if they are protested. This uncertainty-based account stands in sharp contrast to full-information models that characterize protests as rare miscalculations. Adapted from the source document.
ISSN:0002-9602
1537-5390
DOI:10.1086/653596