Diversity of products is nice to have, but it’s not the main reason economics says a competitive marketplace works better. Instead, it’s important mainly because it provides a dynamic incentive for allocating goods efficiently and against artificially creating rents (in the economic, not the housing, sense). Incentivizing innovation is also important, though, and that could plausibly be linked to the financial crisis: the mortgage-backed securities that played a key role were quite novel. Not that I think incentivizing innovation goes in the loss column overall.
“Diversifies risk” is just bizarre, at least outside a few specific segments: an agricultural region takes on less risk if it grows several different kinds of crops, because then the sector as a whole is less vulnerable to e.g. disease or infestation, but that’s just as true if there’s one farmer running the place or fifty, and it’s not like there’s a species of aphid that feeds on refrigerators.
But what do you expect from a link that includes the phrase “human sheep”?
Diversity of products is nice to have, but it’s not the main reason economics says a competitive marketplace works better. Instead, it’s important mainly because it provides a dynamic incentive for allocating goods efficiently and against artificially creating rents (in the economic, not the housing, sense). Incentivizing innovation is also important, though, and that could plausibly be linked to the financial crisis: the mortgage-backed securities that played a key role were quite novel. Not that I think incentivizing innovation goes in the loss column overall.
“Diversifies risk” is just bizarre, at least outside a few specific segments: an agricultural region takes on less risk if it grows several different kinds of crops, because then the sector as a whole is less vulnerable to e.g. disease or infestation, but that’s just as true if there’s one farmer running the place or fifty, and it’s not like there’s a species of aphid that feeds on refrigerators.
But what do you expect from a link that includes the phrase “human sheep”?