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Our search for commodities and services is frequently a reaction to events, some of which affect large groups of the population with a certain regularity. Some of these events are religious, cultural or both. Conventional cycles of work, payment and holiday regulate most peoples’ lives and have an impact on their spending patterns as do seasonal cycles. There are even particular times during the day (and night) which are more propitious for certain types of business.
Because of fluctuations in consumer behaviour, as well as changes in other domains, competitors, and conversion rates, for instance, the bidding price one has on a word/phrase must, at all times, be monitored. In essence, our work is to raise and lower these prices in accordance with these varying factors. These adjustments, which ensure maximum profitability, cannot be managed by an unaided group of people, however gifted. To take all the factors into account and then effect the necessary changes (instantaneous ones when head bidding), sophisticated models and a great deal of processing power is required.
Next is Monte Carlo Simulation (optimization)
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