Markets and linguistic diversity
The choice of language is a crucial decision for firms competing in cultural goods and media markets with a bilingual or multilingual consumer base. To the extent that multilingual consumers have preferences over the intrinsic characteristics (content) as well as over the language of the product, we can examine the efficiency of market outcomes regarding linguistic diversity. In this paper, I extend the spokes model and introduce language as an additional dimension of product differentiation. I show that: (i) if firms supply their product in a single language (the adoption model) then the degree of linguistic diversity is inefficiently low, and (ii) if some firms supply more than one linguistic version (the translation model) then in principle the market outcome may exhibit insufficient or excessive linguistic diversity. However, excessive diversity is associated to markets where the fraction of products in the minority language is disproportionately high with respect to the relative size of the linguistic minority.
|Date of creation:||01 Sep 2009|
|Date of revision:|
|Contact details of provider:|| Postal: 08193, Bellaterra, Barcelona|
Phone: 34 93 592 1203
Fax: +34 93 542-1223
Web page: http://pareto.uab.cat
More information through EDIRC
References listed on IDEAS
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.:
- 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.
- Shlomo Weber & Victor Ginsburgh & Sheila Weyers, 2008.
"Economics of Literary Translation. A Simple Theory and Evidence,"
2008.12, Fondazione Eni Enrico Mattei.
- Ginsburgh, Victor & Weber, Shlomo & Weyers, Sheila, 2007. "Economics of Literary Translation: A Simple Theory and Evidence," CEPR Discussion Papers 6432, C.E.P.R. Discussion Papers.
- 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).
- Ginsburgh, Victor & Ortuño-Ortín, Ignacio & Weber, Shlomo, 2005.
"Disenfranchisement in Linguistically Diverse Societies: The Case of the European Union,"
CEPR Discussion Papers
4875, C.E.P.R. Discussion Papers.
- Victor Ginsburgh & Ignacio Ortuño-Ortín & Shlomo Weber, 2005. "Disenfranchisement In Linguistically Diverse Societies: The Case Of The European Union," Journal of the European Economic Association, MIT Press, vol. 3(4), pages 946-965, 06.
- Victor Ginsburgh & Ignacio Ortuno-Ortin & Shlomo Weber, 2005. "Disenfranchisement in linguistically diverse societies: the case of the European Union," ULB Institutional Repository 2013/1951, ULB -- Universite Libre de Bruxelles.
- GINSBURGH, Victor & ORTUNO-ORTIN, Ignacio & WEBER, Shlomo, 2004. "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).
- GINSBURGH, Victor & ORTUNO-ORTIN, Ignatio & WEBER, Shlomo, . "Disenfranchisement in linguistically diverse societies: the case of the European Union," CORE Discussion Papers RP 1773, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Melitz, Jacques, 2008.
"Language and foreign trade,"
European Economic Review,
Elsevier, vol. 52(4), pages 667-699, May.
- Peitz, Martin & Valletti, Tommaso, 2004.
"Content and Advertising in the Media: Pay-TV versus Free-To-Air,"
CEPR Discussion Papers
4771, C.E.P.R. Discussion Papers.
- 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.
- Ramon Caminal & Lluís M. Granero, 2008.
"Multi-product firms and product variety,"
338, Barcelona Graduate School of Economics.
- Steven C. Salop, 1979. "Monopolistic Competition with Outside Goods," Bell Journal of Economics, The RAND Corporation, vol. 10(1), pages 141-156, Spring.
- Ortega, Javier & Tangeraas, Thomas, 2003.
"Unilingual versus Bilingual Education System: A Political Economy Analysis,"
CEPR Discussion Papers
4003, C.E.P.R. Discussion Papers.
- Ortega, Javier & Tangerås, Thomas P., 2004. "Unilingual Versus Bilingual Education System: A Political Economy Analysis," IZA Discussion Papers 1433, Institute for the Study of Labor (IZA).
- Edward P. Lazear, 1995.
"Culture and Language,"
NBER Working Papers
5249, National Bureau of Economic Research, Inc.
- 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.
- 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.
- Jeffrey Church & Ian King, 1993. "Bilingualism and Network Externalities," Canadian Journal of Economics, Canadian Economics Association, vol. 26(2), pages 337-45, May.
When requesting a correction, please mention this item's handle: RePEc:aub:autbar:781.09. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Xavier Vila)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.