Quotulatiousness

March 7, 2018

Language and the network effect

Filed under: Asia, Economics, History — Tags: , , — Nicholas @ 05:00

Tim Worstall in the Dhaka Tribune:

A recent article on the Dhaka Tribune reported that Bangladesh as a country, as an idea, is rather closely linked with the idea of Bangla as a language. Languages having much to do with something economists find fascinating, network effects.

Indeed, we can explain what happens with languages, with Facebook and with currencies all using these same effects. We end up, as we so often do in economics, with the answer: “It depends.”

Let us leave aside those cultural and political issues, the difference between an official language and a mother tongue and mother language. Instead, consider those as networks. Why is it that Facebook has conquered every other form of social media? For the same reason that one fax machine is an expensive paperweight, two allows information to flow, and millions means those millions can communicate with each other.

So it is with anything subject to strong network effects.

We all go on Facebook because everyone else is there, that everyone else is there means more people join it. The standards fax machines use to talk to each other are just the one set of standards precisely so that they can all communicate.

We might think that the same should be true of language. We could all communicate with each other much more easily if there was just the one language used to do so. Often there is a lingua franca which allows this — say, Latin in the past and English now.

But that’s not really how we humans work. Even Bangla is not the same in each and every area of the country, just as English isn’t even in England. There are local dialects which are not mutually intelligible; we use a simplified or standardized version to speak with people from other areas — this is where the “BBC accent” comes from.

The same is true of German for example, people from different areas cannot understand each other using their local variations so they use a standardized German which no one really speaks at home.

One story — a true one — has it that when John F Kennedy said “Ich bin ein Berliner” in a speech at the Berlin Wall he actually said in the local dialect that he was a jam doughnut. Common German and local are not the same thing at all.

The reason for this is that the language varies from household to household. Every family does have its own little private inside jokes; anyone who has ever met the in-laws knows this.

So too do neighbourhoods, villages and so on. A national language is like a patch-work quilt of these local variations.

To put this into economic terms of our networks, yes, we have that efficiency argument that we should all be using the same inter-changeable language, but that’s just not what we do. There’s a strong force, just us being people, breaking that language up into local variants, as happened with Latin and then Portuguese, Spanish, French, and Italian over the centuries.

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