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Markets and linguistic diversity

Journal of Economic Behavior and Organization | 2010

Paper Details

Authors:

DOI: 10.1016/j.jebo.2010.09.009

Journal: Journal of Economic Behavior and Organization

Year: 2010

Publisher:

Document Type: Article

Open Access: All Open Access; Gold Open Access; Green Open Access

Cited by: 15

Abstract

Producers of cultural goods and media products can make their specific 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 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 the presence of minority languages in these markets. © 2010 Elsevier B.V.

Keywords

Language; Product variety; Translation