The New York Times, CNET, InformationWeek, and 52 other Google News sources missed the significance of Microsoft’s new Research Lab in Cambridge, Mass., headed by Jennifer Chayes and her husband, Christian Borgs. The Times implied that Chayes and Borgs work in an ivory tower where basic research doesn’t have a business imperative.

Nothing could be further from the truth in the online world.

Jennifer Tour Chayes, PhD in mathematical physics, led the highly esteemed Theory Group specializing in theoretical computer science. She’s the co-author of almost 100 scientific papers and co-inventor of more than 20 patents. The New York Times only mentions her work in developing simple models of liquids and solids and the development of some exceedingly fast networking algorithms. Hunh?

Their groundbreaking work in search engine algorithms and social search may be the foundation of a successful Microsoft-Yahoo merger.

Chayes is one of the world’s experts in the modeling and analysis of random, dynamically growing graphs (social graph, social search, Facebook, MySpace) – which are used to model the Internet, the World Wide Web and social networks.

One of the papers the couple co-authored, “Bid optimization in online advertisement auctions”, details the ways paid search campaigns can be optimized by advertisers and search engines. “Multi-unit auctions with budget-constrained bidders”, written by Borgs, Chayes, Nicole Immorlica (MIT), Mohammad Mahdian, and Amin Saberi (published in June 2005), discusses ways to optimize revenue for search engines given the fixed budgets of search marketers.

Their recent work provides a tutorial on search engine optimization and PageRank, before delving deep into algorithms few search marketers (myself included) understand.

Search engine optimization lives and dies by PageRank. Here’s what you need to know about their research into PageRank.

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