Unlike many other kinds of competence, the knowledge of a language yields more benefits to an individual the larger the number of people who share it. Knowing a widely spoken language enables the individual to communicate with a larger number of persons and widens the set of possible interactions (employment, investment and trade opportunities, exchange of information, cultural activities, etc.) available to them. Learning a language, in this sense, means becoming part of a network--a community made up of complementary components in which every new entrant, besides gaining access to the benefits of a set of services, also adds to the potential benefits of all other members (i.e., generates an external effect). This is an important attribute of languages - though not of languages alone. Indeed, something very similar distinguishes most of the services related to communication, information, and transportation. Examples include telephony (where the benefit any customer obtains from the service depends on the number of people with whom the connection enables them to communicate), video formats (the larger the number of users of the same system, the larger the availability of compatible cassettes for sale, rent and exchange), computer operating systems, softwares, and so on. Considering the significance of network industries in modern economies, the vast attention they have received in recent years does not surprise. The purpose of this study is twofold. The first objective is to use the lessons from the economics of networks to gain insights into the rationale for individual choices concerning issues of language and into the economic and social implications of these choices. The second objective is to broaden the analysis and to examine real-world language issues to whose understanding a network externality approach can contribute, and to consider those which, conversely, do not fruitfully lend themselves to this line of inquiry.
Economics of Language: A Network Externalities Approach
DALMAZZONE, Silvana
1999-01-01
Abstract
Unlike many other kinds of competence, the knowledge of a language yields more benefits to an individual the larger the number of people who share it. Knowing a widely spoken language enables the individual to communicate with a larger number of persons and widens the set of possible interactions (employment, investment and trade opportunities, exchange of information, cultural activities, etc.) available to them. Learning a language, in this sense, means becoming part of a network--a community made up of complementary components in which every new entrant, besides gaining access to the benefits of a set of services, also adds to the potential benefits of all other members (i.e., generates an external effect). This is an important attribute of languages - though not of languages alone. Indeed, something very similar distinguishes most of the services related to communication, information, and transportation. Examples include telephony (where the benefit any customer obtains from the service depends on the number of people with whom the connection enables them to communicate), video formats (the larger the number of users of the same system, the larger the availability of compatible cassettes for sale, rent and exchange), computer operating systems, softwares, and so on. Considering the significance of network industries in modern economies, the vast attention they have received in recent years does not surprise. The purpose of this study is twofold. The first objective is to use the lessons from the economics of networks to gain insights into the rationale for individual choices concerning issues of language and into the economic and social implications of these choices. The second objective is to broaden the analysis and to examine real-world language issues to whose understanding a network externality approach can contribute, and to consider those which, conversely, do not fruitfully lend themselves to this line of inquiry.
I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
