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Language, internet and platform competition
Journal of International Economics ( IF 3.712 ) Pub Date : 2021-02-04 , DOI: 10.1016/j.jinteco.2021.103439
Doh-Shin Jeon , Bruno Jullien , Mikhail Klimenko

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.



中文翻译:

语言,互联网和平台竞赛

互联网上英语内容的主导地位引起了一个问题,即在特定国家/地区的消费者双语会如何影响家庭语言内容的数量和该国的福利。我们通过研究小型开放经济体中外国和国内内容分发平台之间的双向市场竞争来解决这个问题。一方面,双语制的好处是,通过增加消费者在外国平台上的集中度,可以增加跨网络的外部性,从而增加家庭语言内容的数量。另一方面,双语主义使家庭语言内容暴露于来自外语内容的竞争中,并软化了平台竞争,从而减少了家庭语言内容的数量。我们发现双语制主要增加了消费者剩余,但可以减少国内生产者剩余。

更新日期:2021-02-28
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