Over-Diversification: Keeping an eye on opportunities for expansion is an important part of maintaining a healthy and successful business. But too much emphasis on diversification can be a bad thing, according to the study.Are you saying that this doesn't happen to governments?
Take Amazon.com. The e-retailer leveraged its success away from music and books and into unrelated areas and got burned. For example, its furniture store, a partnership with Living.com, was shut down last August when Living.com folded.
Over-diversification is a problem because growth and innovation alone aren't sufficient means for achieving lasting success. Innovation must be tempered with efficiency, profitability and true wealth creation, according to the study.
I would agree that growth and expansion are not a moral ambition for the government, but that doesn't seem to stop them.
In what way do you think this principle applies to libertarianism? Or were you using a different definition of "over-diversification"?