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Markets and linguistic diversity

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  • Caminal, Ramon

Abstract

Abstract Producers of cultural goods and media products can make their specific contents available to their audiences and readerships only through a particular language. The choice of language is a non-trivial decision in markets with bilingual or multilingual consumers. In this paper I argue that, the very existence of bilingual consumers may seriously bias market outcomes against minority languages. In particular, I show that the level of linguistic diversity determined by profit maximizing firms tends to be inefficiently low, except when and where the cost of producing a second linguistic version becomes sufficiently low. Thus, the model provides an efficiency argument supporting policies that protect the presence of minority languages in these markets.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Economic Behavior & Organization.

Volume (Year): 76 (2010)
Issue (Month): 3 (December)
Pages: 774-790

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Handle: RePEc:eee:jeborg:v:76:y:2010:i:3:p:774-790

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Keywords: Product variety Language Translation;

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References

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  1. GINSBURGH, Victor & WEBER, Shlomo & WEYERS, Sheila, 2007. "Economics of literary translation : A simple theory and evidence," CORE Discussion Papers 2007062, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  2. Ramon Caminal & Lluís M. Granero, 2008. "Multi-product firms and product variety," Working Papers 338, Barcelona Graduate School of Economics.
  3. Jeffrey Church & Ian King, 1993. "Bilingualism and Network Externalities," Canadian Journal of Economics, Canadian Economics Association, vol. 26(2), pages 337-45, May.
  4. N. Gregory Mankiw & Michael D. Whinston, 1986. "Free Entry and Social Inefficiency," RAND Journal of Economics, The RAND Corporation, vol. 17(1), pages 48-58, Spring.
  5. Javier Ortega & Thomas P. Tangerås, 2008. "Unilingual Versus Bilingual Education: A Political Economy Analysis," Journal of the European Economic Association, MIT Press, vol. 6(5), pages 1078-1108, 09.
  6. GINSBURGH, Victor & ORTUNO-ORTIN, Ignacio & WEBER, Shlomo, 2005. "Disenfranchisement in linguistically diverse societies. The case of the European Union," CORE Discussion Papers 2004080, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  7. Melitz, Jacques, 2008. "Language and foreign trade," European Economic Review, Elsevier, vol. 52(4), pages 667-699, May.
  8. Edward P. Lazear, 1995. "Culture and Language," NBER Working Papers 5249, National Bureau of Economic Research, Inc.
  9. Ortega, Javier & Tangeraas, Thomas, 2003. "Unilingual versus Bilingual Education System: A Political Economy Analysis," CEPR Discussion Papers 4003, C.E.P.R. Discussion Papers.
  10. Yongmin Chen & Michael H. Riordan, 2007. "Price and Variety in the Spokes Model," Economic Journal, Royal Economic Society, vol. 117(522), pages 897-921, 07.
  11. Steven C. Salop, 1979. "Monopolistic Competition with Outside Goods," Bell Journal of Economics, The RAND Corporation, vol. 10(1), pages 141-156, Spring.
  12. Peitz, Martin & Valletti, Tommaso M., 2008. "Content and advertising in the media: Pay-tv versus free-to-air," International Journal of Industrial Organization, Elsevier, vol. 26(4), pages 949-965, July.
  13. Melitz, Jacques, 2007. "The impact of English dominance on literature and welfare," Journal of Economic Behavior & Organization, Elsevier, vol. 64(2), pages 193-215, October.
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Citations

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Cited by:
  1. Emilie Dargaud & Carlo Reggiani, 2012. "On the Price Effects of Horizontal Mergers: A Theoretical Interpretation," The School of Economics Discussion Paper Series 1201, Economics, The University of Manchester.
  2. Carlo Reggiani, 2012. "Spatial price discrimination in the spokes model," The School of Economics Discussion Paper Series 1207, Economics, The University of Manchester.

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