That is called a "pyramid scheme".
funny, because someone else replied to the same passage and called it something else. the terms are not precise, or at least not used consistently enough to bother with a typology or taxonomy.
and it doesn't matter. the relevant question is substantive, not taxonomic.
if the worst you can say to eric posner is 'you are perhaps using the term slightly incorrectly', you haven't debunked his analysis!