“All of a sudden we realized we were in the auction business.”

The Annual Meeting of the American Economics Association tries to work out how Google works or how AdWords changed the world:

here

A tidbit:

During the question-and-answer period, a man wearing a camel-colored corduroy blazer raises his hand. “Let me understand this,” he begins, half skeptical, half unsure. “You say that an auction happens every time a search takes place? That would mean millions of times a day!”

Varian smiles. “Millions,” he says, “is actually quite an understatement.”

Lid dip @joshgans

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