סמינר באסטרטגיה וכלכלת עסקים

Yair Antler, University of Essex

 We find conditions under which a scheme organizer is able to design a pyramid scam to exploit partially sophisticated agent  

Further, we characterize the pyramid scams in which such agents would be willing to participate. 

Motivated by the growing discussion on the legitimacy of multilevel marketing schemes and their resemblance to pyramid scams, we highlight the key differences between the

two types of schemes and characterize the optimal multilevel marketing scheme when agents are fully rational.