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

Abstract

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.