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Be upfront but also consider your objective. Are you hoping company A will match or are you looking for a way to say to A that you’re out? Regardless, being honest with them is best.
Say you prefer them but the other company countered more
If it's a huge amount of money and you'd enjoy working at Company B, I'd go with B.
Re honesty: they would rescind their offer without a second thought I'd they thought future demand changed. I was just reading about Meta rescinding offers to college seniors.
Not always bout the highest salary. Which firm do you want to work for? Better vibe from hiring mgr? Better long term growth?
Vibe from the hiring mgr should not hold too much value. In our line of work, how often do you work with your hiring manager after getting hired ?