Okay. I think you’re saying this is extortion because Walmart’s goal is to build a reputation for only agreeing to deals absurdly favorable to them.
If the focus on building a reputation is the distinguishing factor, then how does that square with the following statement: “it is not useful for me to have a credible reputation for following up on brinksmanship threats?”
Because a reputation for following up brinksmanship threats means that people won’t enter into deals with you at all; extortion works because, to some extent, people have to “deal” with you even if they don’t want to.
This is why I saw a Walmart-monopsony (monopolistic buyer) as closer to extortion, since not trading with them is not an option.