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Communication Effort and the Cost of Language: Evidence from Stack Overflow

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Listed:
  • Jacopo Bregolin

Abstract

The transmission of information is crucial for productivity and growth, but language differences may limit its effectiveness. In this paper, I empirically investigate how the exogenous cost of language affects communication effort, and the trade-off faced by knowledge platforms in implementing their website in multiple languages. I exploit the introduction of websites for languages different from English on a question-and-answering platform and compare the behavior of non-English speaking users before and after the introduction. Results show that the quality of communication improves by more than 24% when writers use their first language, rather than English, and answers are 7% more likely to solve the questioner’s problem, a 20% increase from the baseline. In addition, the size of the effect increases when the sender is more incentivized and when the questioner’s effort is higher. With the introduction of other languages, the community size increases, but the quality of the contribution of the new joiners is lower. Finally, information is more dispersed. These results show that the platform should adopt multiple languages to maximise the quality and quantity of the information collected unless the size of the communities using those languages does not justify the cost.

Suggested Citation

  • Jacopo Bregolin, 2022. "Communication Effort and the Cost of Language: Evidence from Stack Overflow," Working Papers 202213, University of Liverpool, Department of Economics.
  • Handle: RePEc:liv:livedp:202213
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    File URL: https://www.liverpool.ac.uk/media/livacuk/schoolofmanagement/docs/Communication,Effort,and,the,Cost,of,Language,Evidence,from,Stack,Overflow.pdf
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    References listed on IDEAS

    as
    1. Patrick Bolton & Mathias Dewatripont, 1994. "The Firm as a Communication Network," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 109(4), pages 809-839.
    2. Stephen Chen & Ronald Geluykens & Chong Ju Choi, 2006. "The importance of language in global teams: A linguistic perspective," Management International Review, Springer, vol. 46(6), pages 679-696, December.
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    More about this item

    Keywords

    Cost of language; information transmission; knowledge platforms;
    All these keywords.

    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • L17 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Open Source Products and Markets
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • M54 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Labor Management
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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