Here's a pretty good summary of the main point.<p>"Therefore if we rely on consumers to factor in the total cost to society when making a decision, (which is what happens in a for-profit model), in most cases we will never discover the optimal solution for the market because of this basic flaw of human nature. Our reliance on for-profit entities means we often find ourselves stuck in a horrible equilibrium where each individual transaction seems to be worth making, for both parties, but the real net cost far outweighs the benefit."<p>Obviously this is not true of every market but examples abound, andI think Facebook Connect is one of them.