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If you decline the job with your current company in your region, what is your best alternative? What is the employer's best alternative? That determines the limits to what you will accept and that they will offer. (Economists call this BATNA - best alternative to a negotiated agreement)

Cost of living sets a basic expectation, but janitors in silicon valley don't earn the high wages software engineers do there.

The expected value a company can derive from the contributions of an average employee also differ - Google has the market and infrastructure to profiy more per engineer hour than a typical small business.




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