This has happened to me more than once. I always feel such anguish about it. The first time, I turned down the second job even though I wanted it. The second time, I took the better job, even though I'd already gone through the HR stuff and was about to start the first job.
You know what happened? Nothing. I told company #1 that I had gotten a job I'd prefer, we said goodbye, and that was the end of it. No repercussions, nothing bad, not even any anger. Just a shrug and they moved on to their next candidate.
I could have saved myself all that guilt and anguish. You should learn from my experience, and just take the second job. You probably won't be able to work at the first place, but that's not always the case. Do what's best for you. Companies always do what's best for them. It's the way the game is played.
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