Help me understand

Trying to read through Radical Markets at an alarmingly slow pace but getting the ideas and learning a lot. But despite reading the paragraphs explaining why loss in allocative efficiency is less than the gain in investment efficiency, the reasoning escapes me. All of a sudden phrases like distortion to investment are thrown in and numbers placed into a quadratic equation and I have no idea where that comes from or why the reason is that “most valuable sales are…”. What do most valuable sales have to do with the statement about loss in allocative efficiency being less than the gain in investment efficiency?
Thanks to all who might be willing to explain.