
The Horrible Equilibrium that is Facebook Connect  - SMrF
http://www.nymbus.org/blog/2012/02/25/equilibrium/
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SMrF
Here's a pretty good summary of the main point.

"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."

Obviously this is not true of every market but examples abound, andI think
Facebook Connect is one of them.

