Like most people in business, I use Google AdWords. A month or so
ago I started to see that Google was asking me to pay more and more
money for my keywords every month. Initially I was paying a dollar to
be on the first position, however, on the following week, I was on the
second position. Soon after I discovered I had to pay almost five
dollars to be at the top. Surprised, I started to test the system
deeply. Then I realized that no matter what I did my position would be
changing all the time.
Next, I gathered a lot of information and gave it to Dr. Genichi Taguchi, the creator of the statistical method named after him. After some days this Japanese engineer reached an astonishing verdict: according to him, Google was using the famous theory of games of John Forbes Nash Jr., the recipient of the Noble Prize in Economics in 1994. This theory refers to the search of an "equilibrium point". If a gambling house gives a lot of money to its players, it will end up losing lots of it. If, on the other hand, does not give away enough, people will stop betting money. Nash equation would help meeting the famous equilibrium point.
In order to know more, I decided to talk to a specialist in game theory in Florida, and presented the same numbers to him not explaining what the thing was about. After three days, the specialist gave me his answer: "This is a casino!"
Chance or coincidence? In any case, I came to the conclusion that the system works according to a basic rule: It maximizes Google profits according to a method that is the same one used by the lotteries and gambling places.
Suddenly I remembered Google's motto: "Don't do evil". Oh, C'mon….what kind of evil can a search engine do?
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