if you give donuts for free, and the guy next to you tries to sell them at
any price, he will inevitably lose because no one will buy them. But this criticism doesn’t take into account the number of steps required to retrieve the donut (which is a very important part of every online experience.) So, the real analogy would be this: if you offer donuts for free, but anyone who wants them has to run three circles around the nearby building to get one, many people will simply pay, for example, $1 for the donut if it means they can just take it immediately.