There is a video on amazon called "The Inventor: Out of Blood in Silicon Valley"(you can watch on amazon or HBO but I don't think you have to watch the entire video to understand my question). The video is about Theranos and its founder Elizabeth Holmes. You will see that so many smart people fell for Theranos and invested lots of money into the company. The same can be said for Enron, or Bernard Madoff or countless other examples. My question is why? Why are smart people so easily fooled? Use the biases we have learned in class (particularly the availability bias) to answer this question.

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Smart people can be easily fooled by situations like the Theranos scandal Enron or Bernard Madoffs Ponzi scheme due to various cognitive biases includ... View the full answer