Home -> Law Blog Directory -> Criminal Law Blogs -> Crime & Federalism

Criminal Law

: Crime & Federalism

Bernie Madoff and the Social Psychology of the Con

Let's look at the six principles of Influence.  Then let's look at Bernie Madoff (hat tip: Alex).  Influence lists six main principles of persuasion: reciprocation; commitment and consistency; social proof; authority; liking; scarcity. Reciprocation.  Not obviously present.Commitment and consistency.  Madoff always had his investors start small.  "Make a small investment.  If you like what you see, add more."  You put your toe in the water.  You opened the door.Social proof.  Madoff only let "smart" or "successful" people in his funds.  So investors thought, "If all these smart guys are in the fund, it must be good."Authority.  Madoff was head of NASDAQ.  He ran his own brokerage firm. He had clout.Liking.  Mostly Jews were in Madoff's fund...continue to full post

Full post as published by Crime & Federalism on May 04, 2009 (boomark / email).