Interestingly, this matches up with pg's analysis from 2010, based on his experiences in 1998. http://www.paulgraham.com/yahoo.html http://www.paulgraham.com/ya

Interestingly, this matches up with pg's analysis from 2010, based on his experiences in 1998. http://www.paulgraham.com/yahoo.html http://www.paulgraham.com/yahoo.html "I didn't realize the answer till later, after I went to work at Yahoo. It was neither of my guesses. The reason Yahoo didn't care about a technique that extracted the full value of traffic was that advertisers were already overpaying for it. If they merely extracted the actual value, they'd have made less." The problem with customers that are overpaying is that they eventually come to realize it and stop (over) paying.