Economic theory depicts markets and organizations as opposite allocation mechanisms. Markets allocate production factors through mobility and organizations through instruction. The paper argues that labor and capital markets only provide choice in economies that grow through innovation. Diversity of organizations lies at the heart of innovation and gives factor mobility real meaning. This differs from perfect competition and principal agent theories wherein firms behave identically. Individualism spurs innovation, because it allows different valuations of people and projects. Innovation overcomes scarcity and can strike a stable expectational equilibrium, if individual opinion prevails. Collective opinion, by contrast, undermines productivity growth and creates investment booms and busts. The rise of individualism in medieval England and the concept of the individualized corporation in our days are discussed. Investment based on collective opinion increases risk of asset booms and busts.