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The volume of auctions described at Google reflect a change made possible through advances in information technology. The only way that these auctions could be conducted is through the use of information technologies and establishment of business rules.

[....] Googlenomics actually comes in two flavors: macro and micro. The macroeconomic side involves some of the company's seemingly altruistic behavior, which often baffles observers. Why does Google give away products like its browser, its apps, and the Android operating system for mobile phones? Anything that increases Internet use ultimately enriches Google, Varian says. And since using the Web without using Google is like dining at In-N-Out without ordering a hamburger, more eyeballs on the Web lead inexorably to more ad sales for Google. The microeconomics of Google is more complicated. Selling ads doesn't generate only profits; it also generates torrents of data about users' tastes and habits, data that Google then sifts and processes in order to predict future consumer behavior, find ways to improve its products, and sell more ads. This is the heart and soul of Googlenomics. It's a system of constant self-analysis: a data-fueled feedback loop that defines not only Google's future but the future of anyone who does business online. [....] Kamangar and Veach decided to price the slots on the side of the page by means of an auction. Not an eBay-style auction that unfolds over days or minutes as bids are raised or abandoned, but a huge marketplace of virtual auctions in which sealed bids are submitted in advance and winners are determined algorithmically in fractions of a second. Google hoped that millions of small and medium companies would take part in the market, so it was essential that the process be self-service. Advertisers bid on search terms, or keywords, but instead of bidding on the price per impression, they were bidding on a price they were willing to pay each time a user clicked on the ad. (The bid would be accompanied by a budget of how many clicks the advertiser was willing to pay for.) The new system was called AdWords Select, while the ads at the top of the page, with prices still set by humans, was renamed AdWords Premium.

COURSE DESCRIPTION Networked Life looks at how our world is connected -- socially, economically, strategically and technologically -- and why it matters. The answers to the questions at the top of this page are related. They have been the subject of a fascinating intersection of disciplines including computer science, physics, psychology, sociology, mathematics, economics and finance. Researchers from these areas all strive to quantify and explain the growing complexity and connectivity of the world around us, and they have begun to develop a rich new science along the way. Networked Life will explore recent scientific efforts to explain social, economic and technological structures -- and the way these structures interact -- on many different scales, from the behavior of individuals or small groups to that of complex networks such as the Internet and the global economy. This course covers computer science topics and other material that is mathematical, but all material will be presented in a way that is accessible to an educated audience with or without a strong technical background. The course is open to all majors and all levels, and is taught accordingly. There will be ample opportunities for those of a quantitative bent to dig deeper into the topics we examine. The majority of the course is grounded in scientific and mathematical findings of the past two decades or less (often much less). Spring 2010 is the seventh offering of Networked Life. You can get a detailed sense for the course by visiting the extensive course web pages from Spring 2009, Spring 2008, Spring 2007, Spring 2006, Spring 2005, and Spring 2004. This year the course will cover many of the same topics, updated in light of new research since the 2007 offering. As has become standard in the course, we plan to include communal experiments in distributed human decision-making on networks.

daviding says: A course on networks in the Arts and Sciences program at the University of Pennsylvania. The recency of references is striking.

daviding says: If the foundation of the system is in entropy rather than equilibrium, we'll need to figure out how exchange-based societies work, and the function of money (as information, in a general theory of systems).

The specific purpose of this paper is to trace the development of entropy-related thought from its thermodynamic origins through its organizational and economic applications to its relationship to money information. That trace reveals that existing entropy measures are of states or changes in states that are caused by energy processes. We propose that entropy may as well be conceived as entropic process. The social emergent specific exchange value provides a metric by which entropic process may be quantified. The analysis connects the traditional state-oriented entropy measures to measures of entropic process in social systems. In doing so, the character of exchange-based societies and the function of money information within them are elaborated.