Human Psychology is important in every deal.
In relationships, investments, and sales, if there’s a transaction between two parties, negotiation is essential. Even if the price is fixed, the fixed value is decided based on demands and supplies. (This is what we learned from school.) However, when there are not enough transactions in the market, i.e. startup investments, now it depends on human psychology. Everyone pretends to make a rational decision, but your life decision often is affected by emotion.
The rule of thumb is to show your scarcity.
In modern society, I know that I can drink fresh water anytime I want. Thus I don’t appreciate the value of water, even though I can’t survive more than 72 hours without water. When I traveled Gobi desert in Mongolia, because of the heavy sand storm, water was not enough. Then, my Craving for water was intense, and a sip of water was so sweet. In the work, it is also important. You don’t have to show your loyalty to your boss. It’s important to give a signal that you are so competitive that other companies are sending job offers. That’s why the concept of stock options was introduced to keep the super rookies.