The problem is people misunderstand how this works, so none of that happens. Instead the competition goes to 11 while work is cut by upper managers, leading to "non-business decisions" made by lower managers to cling to their bit, leading to less productivity both in absolute & unit terms.

Also, I think A) is a little bit of red herring designed to create agency and opportunity where there is none. If we mean "negotiate" in an airy high-minded vague sense of "negotiate but don't", sure. At the end of the day these moves, whether intended to or not, leave less room for negotiation.