Counter offers aren't rare, but they require good timing and finesse to be effective as leverage. You can't simply shove it in your manager's face and use it to demand a raise. You may first need to maneuver into a place where you play a crucial role in a project, for example.

Obviously not everyone can do that. Then again, not everyone can get offers whenever they need also, especially since doing so requires a large network and regular interviews. Most people have neither.