Very prudent. I try to be as straight-forward as I can with candidates, and I insist on honesty from both sides.
As a side note, I originally wanted to offer the candidate 96K because I knew he was worth it (more, actually.) But, the CEO decided to press on an engineer who wasn't all that driven by money. A phenomenally poor decision.
I resigned from my position at a later date, and our hiring practices were not without consideration.
Why, as employee, you're probably getting played and that you should ask for more money.
Why, as employer, it's advantageous to be magnanimous and not lowball the employee.
And it illustrates the power imbalance.