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But aren't bubbles and pyramid schemes the same thing? The article should really define bubbles if it wants to argue they're different from pyramid schemes.



Bubbles are usually fueled by public manias (e.g. tulips or real estate). Pyramid schemes are planned frauds.


A pyramid scheme is a very specific type of fraud: starting with a very small group and adding tiers of people, using the entry fees (whatever the pretense) of the lower tiers to pay dividends to those in the higher tiers.


Ok, but both rest on the "greater fool" theory...


Yes




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