I just followed an Adsense link on a Google search result page that took me to Google image search. The landing image search page was having lots of Adsense ads of high paying keywords. And for the Google search I did, there was only one sponsor other than Google, that too appeared on the right hand side adslot(seems to be a low paying keyword).
I thought this is what is called click arbitrage. Would Google have two standards for publishers and themselves? Any thoughts?
The landing image search page was having lots of Adsense ads of high paying keywords.
I think you meant "AdWords ads."
Also, as netmeg points out, an ad that refers the user to another page within the same site or group of properties (e.g., from Google Web Search results to Google Image Search results) isn't arbitrage: it's a "house ad."