“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. In fact, 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, foot voters know they will pay a real price if they do a poor job of evaluating the information they get...
The informational advantages of foot voting over ballot box voting strengthen the case for limiting and decentralizing government. The more decentralized government is, the more issues can be decided through foot voting. It is usually much easier to vote with your feet against a local government than a state government, and much easier to do it against a state than against the federal government.
It is also usually easier to foot vote in the private sector than the public. A given region is likely to have far more private planned communities and other private sector organizations than local governments. Choosing among the former usually requires far less in the way of moving costs than choosing among the latter.
Reducing the size of government could also alleviate the problem of ignorance by making it easier for rationally ignorant voters to monitor its activities. A smaller, less complicated government is easier to keep track of.”