Extortion(Though reserved for criminal behavior) can also occur when people take advantage of others. Interpersonal extortion can occur when one person sets you up to depend on them for some type of reward. Rather than money they demand to pay up or perform some service or job otherwise face negative consequences. A friend who seems to “hold the aces” in your relationship, may set the terms of your interactions. Though feeling annoyed for being left dangling yet unable to make any other plans. Milinski asserts, there’s something wrong with the conclusions of psychological experiments in game theory claiming that most people behave cooperatively.

1. Compiled by Col Mukteshwar Prasad(Retd),
MTech,CE(I),FIE(I),FIETE,FISLE,FInstOD,AMCSI
Contact -9007224278, e-mail –
muktesh_prasad@yahoo.co.in
for book ”Decoding Services Selection Board” and SSB
guidance and training at Shivnandani Edu and Defence
Academy
Strategy – To Deal with Extortionists
(When someone uses you for their own
purposes )
Ref- Susan Krauss Whitbourne blog on Psychology today

2. Extortion
 AWHO has constructed Bhaskar Roy Enclave in two phases with common boundary
and even common facilities for serving and retired Army personnel. 1st phase was
handed over from 2010 onwards and 2nd phase from 2017 onwards. Initial settling
problems were resolved mutually with assistance of members of both phases with
understanding co existence, mutual respect and sharing of common assets. Phase 2
were permitted to use PAN no of 1st to operate separate account and managing their
assets as their buildings were new and maintenance requirement was less. AWHO
and all members had mandated to have one RWA(Residents Welfare Association).
Quietly few members of 2nd phase worked behind the scene and exploited their
connectivity with Govt Officials to have separate RWA and staked exclusive claims of
common facilities like Club, Office (built earlier ) and sharing of common facilities
existing in Phase1 as well. This was beyond imagination and thought process of
AWHO(Builder) and all members of phase 1. Yes there were some
misunderstanding with few members of 2nd phase with officials of 1st Phase
,but good sense should have prevailed.
 This is clear example of Groupthink (tendency for a close-knit group to
emphasize consensus at the expense of critical thinking and rational
decision-making.), Group Polarization and risky shift .
 Excellent example of Group EXTORTION as they are staking claims in
spite clear cut instructions, discussion and overall welfare of
community at large, because they smartly included Clubs as part of
phase 2 ,which was common asset and constructed on pursuance of
Phase1 . The assets are lying underutilised and almost defunct for last
3 to 4 years. No one is the gainer.
 It is Deindividuation (When we lose inhibitions and sense of responsibility and not

3. Story 2-Individual vis a vis Organisation
Extortion
 PP is the CEO India of a European FinTech Co operating in
India. The Co has been incorporated ,established and
operational due to mammoth effort single headedly by PP in
this Corona atmosphere without even a single visit of Head
Office. He used all his resources and contacts to ensure its
incorporation and sustenance. Russia –Ukrain conflict had its
shadow on India operation. Yet ,at the cost of even half pay he
kept the organisation afloat. But European operation and Indian
Operation can not be compared as one European nation may
even be smaller than even one state of India. Culturally they
are different. Customer’s psyche is different, One has to live
and understand the difference. But the Organisation thought
process does not visualise the operation and strict rule of Law
and guidance of RBI and other Govt Org.
 Poor CEO in spite of being dynamic, honest ,goal oriented and
mover and putting everything on record is being exploited with
lesser pay during pandemic and now being targeted for not
raising interest rate (gross violation of RBI rue) and not being
profitable , susceptically auditing vendors without his knowledge
,not even paying for sanctioned move to UAE and Seminars

4. Story 3 Individual
 MP is the youngest of 3 brothers. He regarded and
respected them like God as they were 10 to 15 years
elder .His father was devoted farmer who alone
cultivated joint property of over 100 bighas ,yet did not
keep even a rupee for himself or his family. Entire
earning was given to “Malik” of the house. Malik never
gave any money for his father’s family except ration.
Eldest brother purchased some land from gold of his
mother. From the earning house was running. Eldest
brother got a job in and shifted his family to city.
 Brother next to him who stayed back at home always
tried to please elder brother and went in serious debt.
Elder two brothers coolly disposed off some land
without knowledge of youngest. Youngest had no idea
all this kept regarding them as God to his perils.
 On division Youngest got the worst share without any

5. Introduction
Key points
When one person sets up another to
depend on them for some type of
reward, it can be called interpersonal
extortion.
Research shows that 40 percent of
people potentially engage in this type of
manipulative strategy.
Standing up for oneself when being
exploited is difficult when it comes at an
emotional or financial cost.

6. Extortion as an Interpersonal
Strategy
 Extortion(Though reserved for criminal behavior) can also
occur when people take advantage of others.
 Interpersonal extortion can occur when one person sets
you up to depend on them for some type of reward.
 Rather than money they demand to pay up or perform
some service or job otherwise face negative
consequences.
 A friend who seems to “hold the aces” in your
relationship, may set the terms of your interactions.
 Though feeling annoyed for being left dangling yet unable
to make any other plans.
 Milinski asserts, there’s something wrong with the
conclusions of psychological experiments in game theory
claiming that most people behave cooperatively.

7. Extortion as an Interpersonal
Strategy
 Extortion as an Interpersonal Strategy
 Even “Prisoner’s Dilemma.” can be constructed such that an actual
player (Person X) believes they are paired with another participant (Person
Y) when, in reality, one of them (depending on the experiment) is playing
against a computerized partner.
 The maximum payoff occurs when both X and Y cooperate by
agreeing to receive equal amounts.
 However, at any point , Person X could decide to “defect” and take a
larger payout, making less than the maximum but still more than
Person Y.
 In turn, Person Y could also choose to cooperate (take equal payoff)
or defect (take more).
 The extortionate strategy or “Zero-Determinant (ZD)," is one in which
Person X, who controls the distribution of rewards, consistently sets a
higher payoff for themselves than the payoff they set for Person Y.
 This places Person Y in the position of being taken advantage of
because should Person Y choose to defect as well (take a higher
payoff than X), they could stand to lose more than if they just

8. From Extortion to Generosity to Power Plays
 Extortionist is essentially “cooperating” (by continuing to provide some
payoffs to Person Y) and the strategy is basically a prosocial one, albeit a
"voracious one."
 In case Person X gets too greedy
 Person Y can seek retribution from time to time in the form of
their own defection (taking the larger payoff)
 This will cost Person Y more than simply continuing to
cooperate.
 Person X, being brought down a notch or two, may now react
with generosity by resuming higher payoffs for Person Y.
 Similar power dynamics are in play in actual situation like work place where
individuals may find themselves in competition for the same limited rewards
(i.e. salary/promotion).
 As Milinski notes, “If some individuals have more influence than
others, individuals in a superior strategic position may be able to
help themselves to a higher share of the group payoff, although
they know that this comes at the expense of their cooperating
peers” (p. 199).

9. From Extortion to Generosity to Power
Plays….
 Similar ..the expense of their cooperating peers” (p. 199)… exploitative
supervisor.
 In that case, the supervisor can simply decide to fire the non cooperative
employee and find a replacement by hiring someone new.
 Even players could be pitted against each other
 People constantly dole out unequal attention to others, from their own
children to their good friends.
 The question is whether they’ll do so regardless of what they stand to
lose in terms of affection and positive regard.
 In the words of the Max Planck researcher, “about 40% of the people in
the real world might be potential extortioners disguised as nice folks”
(p. 201).

10. How to Pull Out From Under
 Extortionists who tries to exact your cooperation by making you pay if you
defect gives you benefit of going out of relation(4 out of 10 chance).
 In complicated situation of Extortionists being your boss and if you know
you’re replaceable and your livelihood depends on it then you have to
continue to work in less than optimal conditions for years at a time.
 Keep your option open and explore new opportunity
 In relationships like friendship one must let him know that you are ready
to “defect” by refusing to go along with this treatment
 Could help recalibrate the power imbalance back in your favor.
 This defection could take the form of not accepting excuses or
making plans independently of this person
 In the ZD situation, extortionist players learned from the defections of
their counterparts to become more fair and generous.

11. To sum up
 Turning from imbalance to balance when someone
continues to exploit you may be difficult at first as it
comes at an emotional or financial cost.
 However setting own terms will ultimately be the better
strategy to maintain mental health and fulfillment.