Cost of doing buisness?
Google CEO Eric Schmidt believes the “perfect economic solution” to click fraud is to “let it happen”.
But is it really? In other media markets when the content provider makes false ad charges two things happen: The first is, as Schmidt points out, the value of the add deminishes and people are willing to pay less. The second thing is that advirtisers stop doing buisness in that market, which is the important thing about #1. Fraud changes the market, and it changes the market dynamics. Economic markets don’t function efficiently in the presense of fraud.
