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Acquiring foreign languages: a two-sided market approach

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  • Jean Jaskold Gabszewicz
  • Victor Ginsburgh
  • Didier Laussel
  • Shlomo Weber

Abstract

We examine patterns of acquiring non-native languages in a model with two languages corresponding to two populations with heterogeneous learning skills, where every individual faces the choice of self learning the foreign language or refraining from doing so. We then introduce a profit-maximizing international school with two divisions (one in each population) so that each individual may now also choose to learn the other language at school. Comparative statics are analyzed in each model, and the solutions of both models are compared.

Suggested Citation

  • Jean Jaskold Gabszewicz & Victor Ginsburgh & Didier Laussel & Shlomo Weber, 2010. "Acquiring foreign languages: a two-sided market approach," Working Papers ECARES 2010_007, ULB -- Universite Libre de Bruxelles.
    • Handle: RePEc:eca:wpaper:2010_007
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    References listed on IDEAS

    as
    1. Jean-Charles Rochet & Jean Tirole, 2003. "Platform Competition in Two-Sided Markets," Journal of the European Economic Association, MIT Press, vol. 1(4), pages 990-1029, June.
    2. Jean Gabszewicz & Victor Ginsburgh & Shlomo Weber, 2011. "Bilingualism and Communicative Benefits," Annals of Economics and Statistics, GENES, issue 101-102, pages 271-286.
    3. Simon P. Anderson & Stephen Coate, 2005. "Market Provision of Broadcasting: A Welfare Analysis," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 72(4), pages 947-972.
    4. 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.
    5. Jean J. Gabszewicz & Didier Laussel & Nathalie Sonnac, 2004. "Programming and Advertising Competition in the Broadcasting Industry," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 13(4), pages 657-669, December.
    6. Shy,Oz, 2001. "The Economics of Network Industries," Cambridge Books, Cambridge University Press, number 9780521800952.
    7. Jeffrey Church & Ian King, 1993. "Bilingualism and Network Externalities," Canadian Journal of Economics, Canadian Economics Association, vol. 26(2), pages 337-345, May.
    8. Wright, Julian, 2003. "Optimal card payment systems," European Economic Review, Elsevier, vol. 47(4), pages 587-612, August.
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