Companies pay whatever makes sense to pay from a business sense of view. If there is supply of software developers working for 65k/yr, and they don't know how to get 50% more value out of a 100k/yr developer (either because they're unable to figure out, or not interested, or because their business hinges on something else and doesn't scale with better software), then it does not make any sense for them to pay more.
And of course, they will think that whatever they pay is whatever it is worth, because they have no other indicator of fair prices.
Also, I've heard that companies prefer to pay what a job (they think) is worth, regardless of location. Just something I've heard.