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Markets and linguistic diversity

  • Caminal, Ramon

Producers of cultural goods and media products can only make their specific contents available to their audiences and readerships through a particular language. The choice of language is a trivial decision if consumers are monolingual. However, the fraction of bilingual consumers is high in some areas and rising everywhere because of the rapid expansion of English as a second language. In this paper I argue that, independently of the gains associated with the use of a lingua franca, the very existence of bilingual consumers may seriously bias market outcomes against minority languages. In particular, I show that the level of linguistic diversity determined by profit maximizing firms tends to be inefficiently low, except when and where the cost of producing a second linguistic version becomes sufficiently low. Thus, the model provides an efficiency argument supporting policies that protect minority languages in these markets.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 7587.

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Date of creation: Dec 2009
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Handle: RePEc:cpr:ceprdp:7587
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  8. 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.
  9. 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, 04.
  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.
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