Should markets trump ballot boxes?

Law prof and prolific blogger Ilya Somin thinks so and outlines the case for decentralization (via Instapundit)

The key difference between foot voting and ballot box voting is that foot voters don't have the same incentive to be rationally ignorant as ballot box voters do. To the contrary, they have strong incentives to seek out useful information. They also have much better incentives to objectively evaluate what they do learn. Unlike "political fans" who can afford to be "rationally irrational" about political information, foot voters know they will pay a real price if they do a poor job of evaluating the information they get.