But what is "in their favor"?
Hypothetically, I'm new to a field, interviewing with a company in another city. If I'm completely honest with them, then I might say, "You can make me a lousy offer if you want; I'd probably accept it. I don't know the job market, and I don't know your city. But soon, I will. And when I do, unless you offer me enough now to encourage me to stay, I'll be gone. And all your effort in finding me and interviewing me and moving me there and training me and bringing me up to speed on your business will be wasted. So why not just make me a decent offer now?"
Of course, no one ever says that.
But, viewed through that lens, I think it's clear that many businesses are awfully poor players of "the game", as well.