Googlenomics

This is an extremely interesting article about a seminar talk given by the chief economist of Google. It discusses the way that Google uses the never ending Adword auction to sell the sponsored link spots on Google for every search that is performed. It also talks about many of the topics we have studied through this year the author writes "There's the difference between the Generalized Second Price auction model and the Vickrey-Clark-Groves alternative. Game theory takes a turn; so does the Nash Equilibrium." It's interesting how many of the topics we have discussed in class are all put together to fuel Google's finances.

http://www.wired.com/culture/culturereviews/magazine/17-06/nep_googlenomics

I just saw this article the other day as well. When we discussed the pricing scheme for ads in class, i never really realized that it was all real time - i guess it's just because it's been ingrained in our heads that advertising is all like billboards, where advertisers pay a given amount for eyeballs. In google's ad auction, because it auctions every time a search is made, it fine tunes how much each person pays. I guess it brings the whole "metrics" concept into perspective some more.