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.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
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; Fragmentation
- F61 - International Economics - - Economic Impacts of Globalization - - - Microeconomic Impacts
- 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)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- repec:rje:randje:v:37:y:2006:3:p:720-737 is not listed on IDEAS
- Lendle, Andreas & Olarreaga, Marcelo & Schropp, Simon & Vézina, Pierre-Louis, 2012.
"There goes gravity: how eBay reduces trade costs,"
CEPR Discussion Papers
9094, C.E.P.R. Discussion Papers.
- Jeffrey Church & Ian King, 1993. "Bilingualism and Network Externalities," Canadian Journal of Economics, Canadian Economics Association, vol. 26(2), pages 337-45, May.
- Caroline Freund & Diana Weinhold, 2002. "The Internet and International Trade in Services," American Economic Review, American Economic Association, vol. 92(2), pages 236-240, May.
- Caillaud, Bernard & Jullien, Bruno, 2001. "Competing cybermediaries," European Economic Review, Elsevier, vol. 45(4-6), pages 797-808, May.
- Freund, Caroline L. & Weinhold, Diana, 2004. "The effect of the Internet on international trade," Journal of International Economics, Elsevier, vol. 62(1), pages 171-189, January.
- Simon P. Anderson & Stephen Coate, 2003.
"Market Provision of Broadcasting: A Welfare Analysis,"
Virginia Economics Online Papers
358, University of Virginia, Department of Economics.
- Simon P. Anderson & Stephen Coate, 2005. "Market Provision of Broadcasting: A Welfare Analysis," Review of Economic Studies, Oxford University Press, vol. 72(4), pages 947-972.
- Blum, Bernardo S. & Goldfarb, Avi, 2006. "Does the internet defy the law of gravity?," Journal of International Economics, Elsevier, vol. 70(2), pages 384-405, December.
- E. Glen Weyl, 2010. "A Price Theory of Multi-sided Platforms," American Economic Review, American Economic Association, vol. 100(4), pages 1642-72, September.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.