Winning at all Costs: Soviet Style | Extreme Initial Positions ( Part 2 )

Good day Readers, Today we will be continuing the first Point “Extreme Initial Positions“.
Everyone assumed that CBS had won out over its competition. However, the Soviets could not resist the “nibble,” and early in December 1976 they announced another round of bidding. The CBS executives were upset but went back to Moscow for the shutdown, which was to take place on December 15. 
At that time the Soviets announced to the 3 networks that what had occurred up to that point merely qualified each of them to enter the final stage of the auction. The Americans were appalled by the impudence of their hosts, and despite Soviet threats, they all dropped out and went home.
This left the Soviet negotiators empty handed. To be left empty handed in the U.S.S.R. is to be in big trouble. When American officials negotiate and goof up, their livelihoods may be affected. When Soviet officials negotiate and goof up, their lives may be affected.
Desperate to generate fresh competition, the Soviets came up with a 4th option. They proclaimed that the rights to televise the Olympics now belonged to an obscure American Trading company named SATRA, which had an office in New York City. 
SATRA is not what anyone might call a media conglomerate. Granting the rights to them was equivalent to telling a kid who owns a Polaroid, “Do a good job, sonny- the Olympics are yours.“
Cleverly using SATRA leverage, the Soviets induced Lothar Bock to recontact the networks. He did and eventually offered his connections and services to NBC. Wheeling, wheeling and dealing, and flying back and forth between Moscow and Manhattan, Bock ultimately peddled the rights to televise the Olympics to NBC for $87 million. 
On Top of that Sum, the network agreed to pay Bock roughly $6 million for his services, plus additional sums for entertainment specials. Of course, subsequent events caused NBC to regret the victory over their arch-rivals. (Note: The Soviets were never serious about their excessive demand of $210 million. It was later learned that they expected the rights to be sold for between $60 million and $70 million.)  
Although the cited examples actually involve the Soviet Union, similar tactics have long been used in our society. Many years ago I worked for a large casualty insurance company that had publicized claim philosophy that stated, “Prompt fair settlement of all just claims, with courtesy and consideration for all.“
In spite of these lofty sentiments the system rewarded adjusters who lowballed claimants with meager first offers in the best Kermlin tradition. 
This tactic worked because the recipients mistakenly believed that they had no other option but to deal with the adjuster, who represented a monopoly position. Of Course, they had other options: Complain to the state Department of Insurance, write to the president of the insurance company, go over the adjuster’s head to personally visit the claims manager, pursue this matter in small-claims court, retain an attorney to represent them, or even just wait for the pressure of time to take its toll on their adversary.
Situations where the asking price is excessive and intense competition is generated among prospective buyers should also sound familiar. It can be seen at auctions everywhere, with bidders pitted against each other in the fiercest sort of price haggling.
Whenever you have a scarce product, commodity, or service, sellers have been known to exploit the greed of prospective buyers who want instant gratification of their needs. 
A number of years ago the Mazda R X 7, an imported Japanese automobile, was in such hot demand that some dealers orchestrated a flurry of bids and counter-bids that resulted in this car’s selling for as much as $2000 more than it’s listed price.
Why do these Win-Lose Soviet Tactics work? Because we let them work. We are influenced by the extreme initial position, and we’re further baffled when the people we Negotiate with seem to Lack Authority.

So, Readers the Next Point we will Discuss is :

“Limited Authority“

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