Rajiv Sethi: Store Stickers and Indiana’s Law – A Separating Equilibrium
The intent of the “open for everyone” stickers is presumably to signal protest against the law. It’s telling that they appear to be springing up quickly in the face of a barrage of negative national press coverage as well as social media criticism. Most retailers have thin margins, which means all things being equal, their margins are best served by not annoying possible shoppers. So one would assume rectitude on this issue would be the wisest commercial decision. Thus, aside from those owners who favor gay rights, the reaction also appears to signal where many store owners think their community’s opinion lies, as in fence sitting is more costly than saying they aren’t on the side of the new law (or what it might mean in a worst-case scenario). In other words, are we seeing that the heartlands are more liberal than the religious bloc (which punches above its weight politically due to its effectiveness in getting out the vote) would have the public believe?
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