Difference between a ponzi scheme and an asset price bubble

Reference no: EM131451009

Question: In a Ponzi scheme, named after Charles Ponzi, investors are paid profits out of money paid by subsequent investors, instead of from revenues generated by a real business operation. Unless an ever-increasing flow of money from investors is available, a Ponzi scheme is doomed to failure. What's the difference between a Ponzi scheme and an asset price bubble?

Reference no: EM131451009

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