Language, Internet and Platform Competition: the case of Search Engine
AbstractThe World Wide Web was originally a totally English-based medium due to its US origin. Although the presence of other languages has steadily risen, content in English is still dominant, which raises a natural question of how bilingualism of con- sumers of a home country a¤ects production of web content in the home language and domestic welfare? In this paper, we address this question by studying how bilingual- ism a¤ects competition between a foreign search engine and a domestic one within a small country and thereby production of home language content. We ?nd that bilingualism unambiguously softens platform competition, which in turn can induce a reduction in home language content and in home country?s welfare. In particular, it is possible that content in the foreign language crowds out so much content in the home language that consumers enjoy less content when they are bilingual than when they are monolingual.
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Bibliographic InfoPaper provided by Toulouse School of Economics (TSE) in its series TSE Working Papers with number 12-336.
Date of creation: 14 Sep 2012
Date of revision:
Other versions of this item:
- Jeon, Doh-Shin & Jullien, Bruno & Klimenko, Mikhail, 2012. "Language, Internet and Platform Competition: the case of Search Engine," IDEI Working Papers 742, Institut d'Économie Industrielle (IDEI), Toulouse.
- Jeon, Doh-Shin & Jullien, Bruno & Klimenko, Mikhail M., 2012. "Language, Internet and Platform Competition: the case of Search Engine," CEPR Discussion Papers 9144, C.E.P.R. Discussion Papers.
- D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
- D43 - Microeconomics - - Market Structure and Pricing - - - Oligopoly and Other Forms of Market Imperfection
- F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
- L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-09-30 (All new papers)
- NEP-COM-2012-09-30 (Industrial Competition)
- NEP-CUL-2012-09-30 (Cultural Economics)
- NEP-ICT-2012-09-30 (Information & Communication Technologies)
- NEP-NET-2012-09-30 (Network Economics)
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