Learning Foreign Languages.Theoretical and Empirical Implications of the Selten and Pool Model

In this paper we adopt the Selten-Pool model (1993) framework of language acquisition that is based on the notion of communicative benefits and learning costs. We consider a model with languages that serve as imperfect substitutes and show that under supermodularity of the communicative benefits function and some other mild conditions, there exists a unique interior linguistic equilibrium. We then derive a demand function for foreign languages that we estimate for English, French, German and Spanish in 13 European countries.