[random32840]

Can anyone explain why companies do this, but still hire from the expensive areas? If they pay less for the same level of skill in Texas, why don't they stop hiring in SF full stop and only hire in Texas? Is it just a bluff and they'll cave if you challenge them?

[jedimastert]

Because they don't pay people based on how much they're worth. They pay based on how much you'd say yes to.

[random32840]

Right - but you have the same value either way, you just have to apply leverage, right? The gig's up if you don't have to say yes to the lowball offer. What force prevents you just pitting two+ SF companies against each other in a bidding war?

[ghaff]

One argument is that, especially for large companies like Facebook, if you exclude the tech hubs, it's hard to hire enough people with the skills they need.

I think it's also the case that there are probably quite a few employers who don't necessarily try very hard to outbid the big companies in places like SV.