Decision Traps and Ponzi Schemes

We have received great feedback from our readers on our series on decision traps, and they are also among our most read articles on this blog.  I ran accross an article today that discusses the real-world consequences of those traps: the $50B Ponzi scheme orchestrated by the former head of the NASDAQ.  For those of you who think that some people are too smart to fall into those traps, read this great analysis by Ken Hoffberg.   

To paraphrase Ken, the scheme demonstrates at least two of the traps covered in this blog:

• The Confirming Evidence Trap
• The Anchoring Trap

Read for yourself, and assess where you might be falling into decision traps.