Your perception of the other person's perception of you

I'm taking a Negotiations class on Thursday nights at the University of Minnesota. It's an elective as part of my Masters in Business Administration, which I'm slowly completing.

Among other things, we discussed three types of perception:

1) Your perception of yourself
2) Another person's perception of you
3) Your perception of the other person's perception of you

Number 3) causes issues because people are commonly wrong. For example, remember back to the last time you talked with a senior manager at your company. How did it go? I'm guessing that you felt a bit inferior as you assumed the senior manager thought of you as a pee-on who was using their valuable time. I don't talk with senior management very often, but this is a feeling I've gotten.

Turns out, I was probably misreading their perception of me. So instead of talking to them like I would my direct manager, I fumbled and hurried through answers instead of giving a plenary response to their questions.

Have you be in a situation where you're perception of the other person's perception of you, has been wrong?