It seems that someone got the idea from scalpers that it's a good idea to try to scalp ad-words. Buy up all the popular ad-words then resell them at an inflated cost; or that's my read on what this guy is doing. Yes Game Theory says it works, so do the sweaty, shady guys hanging outside concerts -- it's no big discovery.

the physics arXiv blog » Blog Archive » Game theory and the future of Adwords

According to Secrets Singh, these businesses are gonna buy up popular keywords and then resell them to advertisers who want to ensure they don’t miss out on a slot. Secrets and his crew have built a model of this new market and calculated the revenues and payoffs for all parties. The model assumes that this game is a symmetric Nash equilibrium, meaning that everybody plays in the same way (or at least that nobody has anything to gain by unilaterally adopting a different strategy) .

I really doubt it's going to work, though. It's more likely that Google will ban such practices outright. In the end what do no evil means to Google isn't necessarily do no evil yourself, but often make sure no one else does evil and then reap the P/R goodness from that. The P/R alone masks all of the evil that you do.