MARKETS AND CROWDSOURCING.

MARKETS AND CROWDSOURCING. An important argument for markets is that they draw upon the ideas of a large number of people. John Kay wrote an article last year in praise of the market economy (I came across it in the Financial Times). Kay pointed out some of the major innovations of the last 30 years that came from unknown people. He asks whether a planner for the computer industry in the 1970’s would have consulted Bill Gates and Paul Allen (Microsoft) or whether a planner for the retailing industry in the 1990’s would have consulted Jeff Bezos (Amazon). Kay answered his questions: “Of course not: members of the politburo, cabinet or large company board would have consulted grey men in suits like themselves.”