Week 6: Googlenomics

As we are nearing the end of this class, let me begin this blog by first commenting 'Understanding googlenomics - a fusion of math, computer science and the concept of supply and demand!! What a way to end this class. Awesome!'

Yes, the bottom line of googlenomics is a fusion of math, computer science and the concept of supply and demand.

Very impressive to see the then entrepreneurs in the early 2000s to think totally out of the box to create a disruptive market in a very established area of advertising. Even though this the secret sauce of Google, understanding the magnitude and the complexities of algorithms of prediction and extracting signal from noise, a challenging and a daunting for a statistician is a differentiator that will hold high and tall for a long time, even though its competitors such as Yahoo and Microsoft are building inroads to the concept.

It is fascinating to see someone using the concept of game theory and Nash equilibrium, something I learnt in micro-economics to implement Google's risk taking idea coined 'Adwords', its unique method of selling online advertisements using auctions going on real time.

I can see why Google is OK with making many of their apps and especially their Android operating system as an open source platform. All of this has to do with the end goal of having more users using the Internet benefit them.