IDEAS home Printed from https://ideas.repec.org/p/hal/journl/hal-00911834.html
   My bibliography  Save this paper

Markets and Linguistic Diversity

Author

Listed:
  • Ramon Caminal

    (Institut d'Anàlisi Econòmica - Institut d'Anàlisi Econòmica)

Abstract

Producers of cultural goods and media products can make their speci.c contents available to their audiences and readerships only through a particular language. The choice of language is a non-trivial decision in markets with bilingual or multilingual consumers. In this paper I argue that, 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 pro.t maximizing .rms tends to be ine¢ ciently low, except when and where the cost of producing a second linguistic version becomes su¢ ciently low. Thus, the model provides an e¢ ciency argument supporting policies that protect the presence of minority languages in these markets.

Suggested Citation

  • Ramon Caminal, 2010. "Markets and Linguistic Diversity," Post-Print hal-00911834, HAL.
  • Handle: RePEc:hal:journl:hal-00911834
    DOI: 10.1016/j.jebo.2010.09.009
    Note: View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-00911834
    as

    Download full text from publisher

    File URL: https://hal.archives-ouvertes.fr/hal-00911834/document
    Download Restriction: no

    File URL: https://libkey.io/10.1016/j.jebo.2010.09.009?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    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 & Antonio Di Paolo, 2015. "Your Language or Mine?," Working Papers 852, Barcelona School of Economics.
    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. Carlo Reggiani, 2014. "Spatial Price Discrimination in the Spokes Model," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 23(3), pages 628-649, September.
    4. 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).
    5. Begoña Casino & Lluís M. Granero, 2021. "Green products, market structure, and welfare," Journal of Economics, Springer, vol. 134(2), pages 103-125, October.
    6. Carlo Reggiani, "undated". "Optimal Differentiation and Spatial Competition: The Spokes Model with Product Delivery," Discussion Papers 09/13, Department of Economics, University of York.
    7. 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.
    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. Yongmin Chen & Marius Schwartz, 2015. "Churn vs. Diversion: An Illustrative Model," Working Papers gueconwpa~15-15-07, Georgetown University, Department of Economics.
    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. 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..
    6. 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.
    7. 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.
    8. Victor Ginsburgh & Shlomo Weber, 2012. "Culture Languages and Economics," Working Papers ECARES ECARES 2012-009, ULB -- Universite Libre de Bruxelles.
    9. Yuki, Kazuhiro, 2018. "Is bilingual education desirable in multilingual countries?," MPRA Paper 85034, University Library of Munich, Germany.
    10. Torben Stühmeier, 2019. "Media market concentration and pluralism," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 28(2), pages 247-259, April.
    11. 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.
    12. 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.
    13. Aurélien Portuese, 2012. "Law and economics of the European multilingualism," European Journal of Law and Economics, Springer, vol. 34(2), pages 279-325, October.
    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. Muravyev, Alexander & Talavera, Oleksandr, 2016. "Can state language policies distort students’ demand for education?," Journal of Comparative Economics, Elsevier, vol. 44(2), pages 383-399.
    16. Jacques Melitz, 2014. "English as a Global Language," Working Papers 2014-22, Center for Research in Economics and Statistics.
    17. 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.
    18. Melitz, Jacques, 2008. "Language and foreign trade," European Economic Review, Elsevier, vol. 52(4), pages 667-699, May.
    19. Caminal, Ramon, 2006. "Too Many or Too Few Varieties? The Role of Multiproduct Firms," CEPR Discussion Papers 5938, C.E.P.R. Discussion Papers.
    20. Ortega, Javier & Tangeraas, Thomas, 2003. "Unilingual versus Bilingual Education System: A Political Economy Analysis," CEPR Discussion Papers 4003, C.E.P.R. Discussion Papers.

    More about this item

    Keywords

    D43; L13; L82; 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:hal:journl:hal-00911834. 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://hal.archives-ouvertes.fr/ .

    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: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    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.