This is what usually ask to me my friends that are not intertnet or technologies addicted.

It is hard to explain it easily because google changed the rules of several markets and there are not simple theories to spot a light on it.

What I usually try to meke them to understand is where is the “real value” of Google activity.
Tonight I read a peace of John Battelle that will give me the best way to explain this point in the future

“The Database of Intentions is simply this: The aggregate results of every search ever entered, every result list ever tendered, and everypath taken as a result. It lives in many places, but three or four places in particular hold a massive amount of this data (ie MSN,Google, and Yahoo). This information represents, in aggregate form, a place holder for the intentions of humankind – a massive database ofdesires, needs, wants, and likes that can be discovered, supoenaed,archived, tracked, and exploited to all sorts of ends. Such a beast has never before existed in the history of culture, but is almost guaranteed to grow exponentially from this day forward. This artifactm can tell us extraordinary things about who we are and what we want as a culture. And it has the potential to be abused in equally extraordinary fashion”,

Stop. an think about it. How much is it the value of this?
When I was a student, economy and politics were my dayily occupation. I read of theory of games and rational expectations, Muth and Lucas.
I did not agree totally with those ideas but in the internet economy, which is really near to the perfect competion model, players now have a powerful tools to study expectations.
i do not follow anymore academic and economy theroy advance and i don’t know if some professor or researcher is using a part of the Database of Intentions to learn about expectations.

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