Why do you think investors would back a product that had not been proven? Do you think investors—such as millionaires Rupert Mudoch, Betsy DeVos, and the Walton family—were also susceptible to overconfidence bias in their ability to pick and ride a winning start-up? Why or why not?
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What went wrong at Theranos?
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How did Elizabeth Holmes and Theranos demonstrate overconfidence bias? What were the consequences of overconfidence bias for Holmes and Theranos?
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Why do you think investors would back a product that had not been proven? Do you think investors—such as millionaires Rupert Mudoch, Betsy DeVos, and the Walton family—were also susceptible to overconfidence bias in their ability to pick and ride a winning start-up? Why or why not?
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Behavioral economist Hersh Shefrin has suggested that Theranos investors’ overconfidence caused them to let themselves be conned. Is that plausible to you? How might that have worked?
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What harms were caused by Theranos and Holmes making false and misleading statements? How can hype transform into overconfidence or over-optimism?
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Why do you think Holmes would continue to push the same narrative of personal and company success when faced with increased scrutiny?
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Can you think of an example of another company leader who demonstrated overconfidence bias? How did this leader’s approach affect the company?
SAMPLE ASSIGNMENT
