Yes, you can, but google have an ambiguous attitude to arbitrage, and if they think that you have an arbitrage or mfa site, they tend to 'slap' you, and keep your costs high.
I would be VERY careful about this. Arbitrage rules have changed in since referrals 2.0 came out in Adsense which almost everyone is opted into.: Can I use search engine marketing to promote my referrals campaign? You may not use search engine marketing to purchase traffic for the specific and sole purpose of generating conversions, unless you have the express permission of the advertiser. Now bear this in mind... Google considers craigslist marketing and PPC marketing as "search engine marketing" and can pick and choose what sites they think are using SEM.
Really that can be tricky, If u are trying to play arbitage game then chances are very high that your adsense account can get banned.
i've done it before without a problem - but as the others said if you are using some form of service that can create illegal impressions or those other ppc marketing places, don't expect to keep ur adsense account for long
yes, i dont think there is any prob as I am using it for the last 3 yrs... But the comment by cianuro makes me think...
Thanks for the info, this question just pop in my mind today and luckyly find this topic. I better stay out to use adword on my adsense site to avoid unnessesary problem.
You can do it, I've been doing it for two years.. But if your goals is to pull of a arbitrage game, I would advice you to think twice about doing it.