Jeon, Doh-Shin, Jullien, Bruno and Klimenko, Mikhail (2021) Language, internet and platform competition. Journal of International Economics, vol. 131 (n° 103439). (In Press)

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Identification Number : 10.1016/j.jinteco.2021.103439


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 countryís 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 beneÖt 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 Önd that bilingualism mostly increases consumer surplus but can reduce domestic producer surplus. The welfare effect of taxing the foreign platform is also analyzed

Item Type: Article
Language: English
Date: July 2021
Refereed: Yes
Place of Publication: Amsterdam
Uncontrolled Keywords: Language, Bilingualism, Platforms, Two-sided Market, Content Producers, International Trade
JEL Classification: D43 - Oligopoly and Other Forms of Market Imperfection
F12 - Models of Trade with Imperfect Competition and Scale Economies
L13 - Oligopoly and Other Imperfect Markets
L86 - Information and Internet Services; Computer Software
Divisions: TSE-R (Toulouse)
Site: UT1
Date Deposited: 26 Nov 2020 13:52
Last Modified: 10 Jun 2021 08:12
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