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August 10, 2009


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michael webster

I agree with much of this, and would add the following.

1. Google quality score affects your ad placement, and quality score is fairly opaque.

2. On the content network, ad placement is much more opaque.

3. Ads can have high quality score, but Google decides that only the first 10 run on the first page, and nothing runs on the second search page.

4. Google's attitude to trademarks changes constantly. Now limited use of trademarks in adwords is allowed.

This is an excellent anti-trust problem, and I look forward to you following up with a paper called "Auction Design - The Anti Trust Issues."


Well, None of us has done a serious antitrust analysis. Monday morning quarterbacking is fun and easy even in antitrust.


There have been several lawsuits filed against Google the past few months over the use of trademarks in AdWords advertisements, including a class action suit in Texas, so Google's attitude towards trademarks will eventually be defined.

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