Hal R. Varian
University of California at Berkeley
Search engines is the most widely used in the internet, 86% of the internet users uses search engine. The search engine, the main function of this is to search for something that users want to find, but that’s not all according to them that search engines is highly profitable. Search engines are accepting advertisement which gives them a money since the advertising company is using the website of the search engine. Example of the search engine are yahoo, google and MSN. The search engine is a two sided-matching, one side is for searching information’s that user need while the other side of the web is for advertising. Brin and Page started Google they have no intention to make it a business. At one point they offered to sell the Pagerank algorithm they use to Yahoo for $ 1 million. The company in Pasadema named Goto.com was starting to auction off Search results. When the Goto.com launch the auctioning search result, the said program was not working well. They made a new business which they auctioned off advertisements to accompany. At that time also they change their name to Overture. The Google get some idea to Goto.com but they improve the program that Goto.com made. The Google Ad auction is the largest electronic auction in the entire world. So the ranking used by Google and Yahoo was based not only in the bids but also the Ad quality. In this I making my conclusion that the search engines are a two sided, one side is for making money and the other side giving information, for me it is very good kind idea. You can help to the people by giving the information they need at the same time you earn money.
REFERENCE:
http://people.ischool.berkeley.edu/~hal/Papers/2007/costa-lecture.pdf
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