'economists / clever people who have really investigated this'
Roseformeplease From your comment you are obviously well-educated, and well intentioned, but what makes you think that persons with a degree in economics are qualified to investigate this phenomenon? Indeed what traditional academic qualification do you think would qualify anyone to investigate this phenomenon?
That said, there are some very insightful people commenting on this Forum who have rapidly arrived at the truth and who can express it clearly.
I hate to disillusion you, but as far as I'm aware, there are no traditional academics who have really investigated the 'MLM' phenomenon, let alone come up with a satisfactory clear explanation of it.
I have been investigating, and deconstructing, 'MLM' cultic groups for more than 20 years, and I have long since formed the conclusion that to understand what lies behind them, you require a grounding in numerous traditional academic disciplines, a large dose of common sense, a good sense of humour and a skin as thick as a rhino. Indeed, in many repects, what I have labelled, 'Blame-The-Victim MLM income opportunity' racketeering, is a whole new academic study in itself, but academics have missed it, whilst some (including attorneys and economists) have been co-opted by it.