Which is better: efficient markets or efficient communities?

In my post last week, I talked about what I see as inefficiencies in the system design of many crowdsourcing projects. Today, I thought I’d stick with the inefficiency theme after reading a blog by Umair Haque entitled The Efficient Community Hypothesis (thanks to Rebecca Fernandez for pointing it out).

In this post, Haque makes the case that the efficient market hypothesis often talked about by finance types should be replaced by something he calls the efficient community hypothesis.

From the post (all emphasis mine):

“…where efficient markets incorporate “all known information,” efficient communities incorporate “the best known information.” An efficient market is a tool for sorting the largest quantity of info. But an efficient community is a tool for sorting the highest quality info.”

[Read the rest of this post on opensource.com]