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Language, internet and platform competition

Author

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  • Doh-Shin Jeon
  • Bruno Jullien

    (TSE-R - Toulouse School of Economics - UT Capitole - Université Toulouse Capitole - UT - Université de Toulouse - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

  • Mikhail Klimenko

Abstract

The dominance of English language content on the Internet raises a question of how consumer bilingualism in a given country affects the amount of home language content and the country's welfare. We address this question by studying two-sided market competition between a foreign and a domestic content distribution platform in a small open economy. On the one hand, bilingualism has the benefit of increasing cross-side network externalities by increasing consumer concentration on the foreign platform, which increases the amount of home language content. On the other hand, bilingualism exposes home language content to competition from foreign language content and softens platform competition, which reduces the amount of home language content. We find that bilingualism mostly increases consumer surplus but can reduce domestic producer surplus. The welfare effect of taxing the foreign platform is also analyzed.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Doh-Shin Jeon & Bruno Jullien & Mikhail Klimenko, 2021. "Language, internet and platform competition," Post-Print halshs-03476164, HAL.
  • Handle: RePEc:hal:journl:halshs-03476164
    DOI: 10.1016/j.jinteco.2021.103439
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-03476164
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    2. Jeon, Doh-Shin & Jullien, Bruno & Klimenko, Mikhail, 2021. "Language, internet and platform competition," Journal of International Economics, Elsevier, vol. 131(C).
    3. Hans Jarle Kind & Lars Sørgard, 2013. "Market Segmentation in Two-Sided Markets: TV Rights for Premier League," CESifo Working Paper Series 4060, CESifo.
    4. Bernat Mallén Alberdi, 2023. ""The Effect of Competition on Language Diversity in the Movie-Theatre Industry"," IREA Working Papers 202305, University of Barcelona, Research Institute of Applied Economics, revised May 2023.
    5. Bernat Mallén, 2023. "“The Effect of Competition on Language Diversity in the Movie-Theatre Industry”," AQR Working Papers 202302, University of Barcelona, Regional Quantitative Analysis Group, revised May 2023.

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    More about this item

    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software

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