IDEAS home Printed from https://ideas.repec.org/p/liv/livedp/202213.html
   My bibliography  Save this paper

Communication Effort and the Cost of Language: Evidence from Stack Overflow

Author

Listed:
  • Jacopo Bregolin

Abstract

The transmission of information is crucial for productivity and growth, but language differences may limit its effectiveness. In this paper, I empirically investigate how the exogenous cost of language affects communication effort, and the trade-off faced by knowledge platforms in implementing their website in multiple languages. I exploit the introduction of websites for languages different from English on a question-and-answering platform and compare the behavior of non-English speaking users before and after the introduction. Results show that the quality of communication improves by more than 24% when writers use their first language, rather than English, and answers are 7% more likely to solve the questioner’s problem, a 20% increase from the baseline. In addition, the size of the effect increases when the sender is more incentivized and when the questioner’s effort is higher. With the introduction of other languages, the community size increases, but the quality of the contribution of the new joiners is lower. Finally, information is more dispersed. These results show that the platform should adopt multiple languages to maximise the quality and quantity of the information collected unless the size of the communities using those languages does not justify the cost.

Suggested Citation

  • Jacopo Bregolin, 2022. "Communication Effort and the Cost of Language: Evidence from Stack Overflow," Working Papers 202213, University of Liverpool, Department of Economics.
  • Handle: RePEc:liv:livedp:202213
    as

    Download full text from publisher

    File URL: https://www.liverpool.ac.uk/media/livacuk/schoolofmanagement/docs/Communication,Effort,and,the,Cost,of,Language,Evidence,from,Stack,Overflow.pdf
    File Function: First version, 2022
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Patrick Bolton & Mathias Dewatripont, 1994. "The Firm as a Communication Network," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 109(4), pages 809-839.
    2. Stephen Chen & Ronald Geluykens & Chong Ju Choi, 2006. "The importance of language in global teams: A linguistic perspective," Management International Review, Springer, vol. 46(6), pages 679-696, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Patrick Legros & Andrew F. Newman & Eugenio Proto, 2014. "Smithian Growth through Creative Organization," The Review of Economics and Statistics, MIT Press, vol. 96(5), pages 796-811, December.
    2. Eichengreen, Barry & Ghironi, Fabio, 1997. "European Monetary Unification and International Monetary Cooperation," Center for International and Development Economics Research, Working Paper Series qt10d518tg, Center for International and Development Economics Research, Institute for Business and Economic Research, UC Berkeley.
    3. Daron Acemoglu & Philippe Aghion & Claire Lelarge & John Van Reenen & Fabrizio Zilibotti, 2007. "Technology, Information, and the Decentralization of the Firm," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 122(4), pages 1759-1799.
    4. Sudip Datta & Mai Iskandar-Datta, 2014. "Upper-echelon executive human capital and compensation: Generalist vs specialist skills," Strategic Management Journal, Wiley Blackwell, vol. 35(12), pages 1853-1866, December.
    5. Dennis J. Snower & Alessio J. G. Brown & Christian Merkl, 2009. "Globalization and the Welfare State: A Review of Hans-Werner Sinn's Can Germany Be Saved?," Journal of Economic Literature, American Economic Association, vol. 47(1), pages 136-158, March.
    6. repec:cep:stieop:49 is not listed on IDEAS
    7. Nicholas Bloom & Luis Garicano & Raffaella Sadun & John Van Reenen, 2014. "The Distinct Effects of Information Technology and Communication Technology on Firm Organization," Management Science, INFORMS, vol. 60(12), pages 2859-2885, December.
    8. Oriana Bandiera & Renata Lemos & Andrea Prat & Raffaella Sadun, 2018. "Managing the Family Firm: Evidence from CEOs at Work," The Review of Financial Studies, Society for Financial Studies, vol. 31(5), pages 1605-1653.
    9. , & , M. & ,, 2013. "Hierarchical cheap talk," Theoretical Economics, Econometric Society, vol. 8(1), January.
    10. Àlex Arenas & Antonio Cabrales & Leon Danon & Albert Díaz-Guilera & Roger Guimerà & Fernando Vega-Redondo, 2010. "Optimal information transmission in organizations: search and congestion," Review of Economic Design, Springer;Society for Economic Design, vol. 14(1), pages 75-93, March.
    11. Nathalie Greenan & Emmanuelle Walkowiak, 2005. "Informatique, organisation du travail et interactions sociales," Économie et Statistique, Programme National Persée, vol. 387(1), pages 35-63.
    12. Jeremy C. Stein, 2002. "Information Production and Capital Allocation: Decentralized versus Hierarchical Firms," Journal of Finance, American Finance Association, vol. 57(5), pages 1891-1921, October.
    13. Dupouet, Olivier & Yildizoglu, Murat, 2006. "Organizational performance in hierarchies and communities of practice," Journal of Economic Behavior & Organization, Elsevier, vol. 61(4), pages 668-690, December.
    14. repec:awi:wpaper:0421 is not listed on IDEAS
    15. Andrea Patacconi, 2009. "Coordination and delay in hierarchies," RAND Journal of Economics, RAND Corporation, vol. 40(1), pages 190-208, March.
    16. Nicholas Bloom & Raffaella Sadun, 2012. "The Organization of Firms Across Countries," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 127(4), pages 1663-1705.
    17. Garicano, Luis & Hubbard, Thomas N, 2007. "Managerial Leverage Is Limited by the Extent of the Market: Hierarchies, Specialization, and the Utilization of Lawyers' Human Capital," Journal of Law and Economics, University of Chicago Press, vol. 50(1), pages 1-43, February.
    18. Leslie A. Robinson & Phillip C. Stocken, 2013. "Location of Decision Rights Within Multinational Firms," Journal of Accounting Research, Wiley Blackwell, vol. 51(5), pages 1261-1297, December.
    19. David J. Deming, 2017. "The Growing Importance of Social Skills in the Labor Market," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 132(4), pages 1593-1640.
    20. Xavier Ragot, 2003. "Division du travail et progrès technique," Revue économique, Presses de Sciences-Po, vol. 54(4), pages 725-741.
    21. İ. Akçomak & Lex Borghans & Bas Weel, 2011. "Measuring and Interpreting Trends in the Division of Labour in the Netherlands," De Economist, Springer, vol. 159(4), pages 435-482, December.
    22. repec:hal:spmain:info:hdl:2441/4cufqrm9749dbol0m0bsfeopka is not listed on IDEAS
    23. Luis Otávio Façanha & Marcelo Resende, 2006. "Hierarchical Structure in Brazilian Industrial Firms: an Econometric Study," Economics Working Papers ECO2006/1, European University Institute.

    More about this item

    Keywords

    Cost of language; information transmission; knowledge platforms;
    All these keywords.

    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • L17 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Open Source Products and Markets
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • M54 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Labor Management
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:liv:livedp:202213. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Rachel Slater (email available below). General contact details of provider: https://edirc.repec.org/data/mslivuk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.