[richdougherty]

Walking away is a bug if you consider a single deal - it's always better to get something rather than nothing.

However, if you zoom out and consider the optimal deal-making strategy over multiple deals, then walking away can be a good strategy. For example, a used car salesman would rationally walk away from a deal if they believed it's likely they can sell a car later for a better price.

If you consider multiple deals then you can also consider the concept of your reputation. This is information that other parties may have about you when they enter a negotiation in the future. You may rationally wish to make a sacrifice on a present deal in order to alter your reputation, to improve your outcomes in future detals.

See: https://en.wikipedia.org/wiki/Repeated_game