I do want to clarify, its not common (the pull the offer part), but I've had a friend go through it, and I once had it happen.
More often, alot of times the company will say something about going with the other offer, like you stated, or something in that ballpark.
A couple times though, I had a company dutifully try and convince me that the perks and work-life balance were better, even thought the salary maybe was not. That was an interesting one.
If you told me I got a ton of vacation time for a significant salary cut I would seriously consider the offer. Or some 4-day workweek setup. Those are the kind of things I would take a significant chunk of less money for.
More often, alot of times the company will say something about going with the other offer, like you stated, or something in that ballpark.
A couple times though, I had a company dutifully try and convince me that the perks and work-life balance were better, even thought the salary maybe was not. That was an interesting one.