IDEAS home Printed from https://ideas.repec.org/p/bge/wpaper/396.html
   My bibliography  Save this paper

Markets and linguistic diversity

Author

Listed:
  • Ramon Caminal

Abstract

The choice of language is a crucial decision for …rms 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 …rms supply their product in a single language (the adoption model) then the degree of linguistic diversity is inefficiently low, and (ii) if some …rms 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.

Suggested Citation

  • Ramon Caminal, 2009. "Markets and linguistic diversity," Working Papers 396, Barcelona School of Economics.
  • Handle: RePEc:bge:wpaper:396
    as

    Download full text from publisher

    File URL: https://www.barcelonagse.eu/sites/default/files/working_paper_pdfs/396.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Ramon Caminal & Lluís M. Granero, 2012. "Multi‐product Firms and Product Variety," Economica, London School of Economics and Political Science, vol. 79(314), pages 303-328, April.
    2. 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, June.
    3. Edward P. Lazear, 1999. "Culture and Language," Journal of Political Economy, University of Chicago Press, vol. 107(S6), pages 95-126, December.
    4. 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.
    5. 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.
    6. GINSBURGH, Victor & WEBER, Shlomo & WEYERS, Sheila, 2007. "Economics of literary translation : A simple theory and evidence," LIDAM Discussion Papers CORE 2007062, 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. Jeffrey Church & Ian King, 1993. "Bilingualism and Network Externalities," Canadian Journal of Economics, Canadian Economics Association, vol. 26(2), pages 337-345, May.
    9. Steven C. Salop, 1979. "Monopolistic Competition with Outside Goods," Bell Journal of Economics, The RAND Corporation, vol. 10(1), pages 141-156, Spring.
    10. Ortega, Javier & Tangeraas, Thomas, 2003. "Unilingual versus Bilingual Education System: A Political Economy Analysis," CEPR Discussion Papers 4003, C.E.P.R. Discussion Papers.
    11. 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.
    12. 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, September.
    13. Yongmin Chen & Michael H. Riordan, 2007. "Price and Variety in the Spokes Model," Economic Journal, Royal Economic Society, vol. 117(522), pages 897-921, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ramon Caminal, 2013. "The economic value of reciprocal bilingualism," UFAE and IAE Working Papers 933.13, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
    2. Emilie Dargaud & Carlo Reggiani, 2015. "On The Price Effects Of Horizontal Mergers: A Theoretical Interpretation," Bulletin of Economic Research, Wiley Blackwell, vol. 67(3), pages 236-255, July.
    3. Begoña Casino & Lluís M. Granero, 2021. "Green products, market structure, and welfare," Journal of Economics, Springer, vol. 134(2), pages 103-125, October.
    4. Ramon Caminal & Antonio Di Paolo, 2015. "Your Language or Mine?," Working Papers 852, Barcelona School of Economics.
    5. Yongmin Chen & Marius Schwartz, 2016. "Churn Versus Diversion in Antitrust: An Illustrative Model," Economica, London School of Economics and Political Science, vol. 83(332), pages 564-583, October.
    6. Carlo Reggiani, 2014. "Spatial Price Discrimination in the Spokes Model," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 23(3), pages 628-649, September.
    7. Yongmin Chen & Marius Schwartz, 2015. "Churn vs. Diversion: An Illustrative Model," Working Papers gueconwpa~15-15-07, Georgetown University, Department of Economics.
    8. Yongmin Chen & Xinyu Hua, 2017. "Competition, Product Safety, and Product Liability," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 33(2), pages 237-267.
    9. Carlo Reggiani, "undated". "Optimal Differentiation and Spatial Competition: The Spokes Model with Product Delivery," Discussion Papers 09/13, Department of Economics, University of York.
    10. Ramon Caminal & Antonio Di Paolo, 2019. "Your Language Or Mine? The Noncommunicative Benefits Of Language Skills," Economic Inquiry, Western Economic Association International, vol. 57(1), pages 726-750, January.
    11. Barañano Mentxaka, Ilaski & Kovarik, Jaromir & Uriarte Ayo, José Ramón, 2014. "Experimental Economics Meets Language Choice," IKERLANAK info:eu-repo/grantAgreeme, Universidad del País Vasco - Departamento de Fundamentos del Análisis Económico I.

    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. Victor Ginsburgh & Shlomo Weber, 2020. "The Economics of Language," Journal of Economic Literature, American Economic Association, vol. 58(2), pages 348-404, June.
    2. Jeon, Doh-Shin & Jullien, Bruno & Klimenko, Mikhail, 2021. "Language, internet and platform competition," Journal of International Economics, Elsevier, vol. 131(C).
    3. Yuki, Kazuhiro, 2021. "Language education and economic outcomes in a bilingual society," MPRA Paper 106119, University Library of Munich, Germany.
    4. Weeds, Helen, 2012. "Superstars and the long tail: The impact of technology on market structure in media industries," Information Economics and Policy, Elsevier, vol. 24(1), pages 60-68.
    5. Victor Ginsburgh & Shlomo Weber, 2012. "Culture Languages and Economics," Working Papers ECARES ECARES 2012-009, ULB -- Universite Libre de Bruxelles.
    6. Melitz, Jacques, 2014. "English as a global language," CEPR Discussion Papers 10102, C.E.P.R. Discussion Papers.
    7. Rey, Patrick & Salant, David, 2012. "Abuse of dominance and licensing of intellectual property," International Journal of Industrial Organization, Elsevier, vol. 30(6), pages 518-527.
    8. Alexander Muravyev & Oleksandr Talavera, 2010. "Can State Language Policies Distort Students' Demand for Higher Education?," University of East Anglia Applied and Financial Economics Working Paper Series 023, School of Economics, University of East Anglia, Norwich, UK..
    9. Akio Kawasaki & Ming Hsin Lin & Noriaki Matsushima, 2014. "Multi‐Market Competition, R&D, and Welfare in Oligopoly," Southern Economic Journal, John Wiley & Sons, vol. 80(3), pages 803-815, January.
    10. Caminal, Ramon, 2006. "Too Many or Too Few Varieties? The Role of Multiproduct Firms," CEPR Discussion Papers 5938, C.E.P.R. Discussion Papers.
    11. Yongmin Chen & Xinyu Hua, 2017. "Competition, Product Safety, and Product Liability," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 33(2), pages 237-267.
    12. Kikushima, Ryosuke, 2019. "Spatial Competition among Farmers' Markets," Japanese Journal of Agricultural Economics (formerly Japanese Journal of Rural Economics), Agricultural Economics Society of Japan (AESJ), vol. 21.
    13. Yuki, Kazuhiro, 2018. "Is bilingual education desirable in multilingual countries?," MPRA Paper 85034, University Library of Munich, Germany.
    14. Alcalde-Unzu, Jorge & Moreno-Ternero, Juan D. & Weber, Shlomo, 2022. "The measurement of the value of a language," Journal of Economic Theory, Elsevier, vol. 203(C).
    15. Torben Stühmeier, 2019. "Media market concentration and pluralism," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 28(2), pages 247-259, April.
    16. Melitz, Jacques, 2008. "Language and foreign trade," European Economic Review, Elsevier, vol. 52(4), pages 667-699, May.
    17. Ortega, Javier & Tangeraas, Thomas, 2003. "Unilingual versus Bilingual Education System: A Political Economy Analysis," CEPR Discussion Papers 4003, C.E.P.R. Discussion Papers.
    18. Choi, Jay Pil, 2006. "Broadcast competition and advertising with free entry: Subscription vs. free-to-air," Information Economics and Policy, Elsevier, vol. 18(2), pages 181-196, June.
    19. Fabrizio Germano, 2008. "On commercial media bias," Economics Working Papers 1133, Department of Economics and Business, Universitat Pompeu Fabra, revised Apr 2009.
    20. Ginsburgh, Victor & Ortuño-Ortín, Ignacio & Weber, Shlomo, 2007. "Learning foreign languages: Theoretical and empirical implications of the Selten and Pool model," Journal of Economic Behavior & Organization, Elsevier, vol. 64(3-4), pages 337-347.

    More about this item

    Keywords

    product variety; language; translation;
    All these keywords.

    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media

    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:bge:wpaper:396. 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: . General contact details of provider: https://edirc.repec.org/data/bargses.html .

    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: Bruno Guallar (email available below). General contact details of provider: https://edirc.repec.org/data/bargses.html .

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.