> Why pay someone a Bay Area or NYC salary when they work in rural Montana, when they could pay a rural Montana salary to get someone who works in rural Montana

> Why pay someone a Bay Area or NYC salary when they work in rural Montana, when they could pay a rural Montana salary to get someone who works in rural Montana? Because you can't get anyone in rural Montana who is capable of getting a job paying Bay Area or NYC salaroies to accept that offer. Adjustment will result in meeting somewhere in the middle but whether that's 25% or 95% of Bay Area salaries is an open question.