Matt Cutts authored the first article for Google's Newsletter for Librarians, where he answered the question "How does Google decide what result goes at the top of the list?" and provided exercises for students to do to help them understand ranking.
In the As a rule, Google tries to find pages that are both reputable and relevant. If two pages appear to have roughly the same amount of information matching a given query, we'll usually try to pick the page that more trusted websites have chosen to link to. Still, we'll often elevate a page with fewer links or lower PageRank if other signals suggest that the page is more relevant. For example, a web page dedicated entirely to the civil war is often more useful than an article that mentions the civil war in passing, even if the article is part of a reputable site such as Time.com.
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Google Sends Librarians A Letter
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