The argument that “the market” will erode or make less profitable discriminatory behavior has no theoretical support. It could, but it also could not. Lots of economics theory has been written about this.

In the hallways of a rural Oregon high school, gay and lesbian students were taunted with homophobic slurs. In the cafeteria, students pelted a transgender student with food. And when gay and lesbian students got into trouble, the school’s principal assigned a specific punishment just for them: readings from the Bible.

Students detailed those allegations in recent state investigative reports into the North Bend School District, a coastal area about 100 miles north of California. In the reports, gay and lesbian high school students described years of harassment and bigotry from school employees and other students, and a deeply religious culture that silenced their complaints.

The two reports, completed in March by an investigator in the Oregon Department of Education and made public this month, found that top officials in North Bend had for at least the past two school years fostered hostile conditions for gay and lesbian students, hesitated to intervene after reports of sexual harassment and retaliated against a school counselor who had cooperated with the state investigation.