Sampajañña: what is the correct action?

One of Buddha's four ways of training the mind for Sampajañña ("clear comprehension") is to *know the suitability of an action*. From an anecdote given by Joseph Goldstein, his meditation master was haggling with a seller. When asked why, he replied > The path of the Dhamma is to be simple, not a simpleton. The following are two situations which I deal with on a daily basis, and I still am unsure what is the suitable or correct action to take. - Two people are walking towards each other on a narrow path, do you yield first and let the other pass? - Two people both make eye contact, who should avert their gaze first to avoid a staredown contest? The more abstract problem here might be described as, the correct action to take when you and another have conflicting interests. An answer to that is appreciated as well, but I really do mean to ask, how do you deal with the two concrete situations given above?