Above OR Below: Narcissistic Perception

A person who has Narcissism issues thinks in "black and white" terms; everything is ONE THING OR THE OTHER. So their interaction with other people reflects this: To a Narcissist, other people are not variable, changing, growing, autonomous beings who are capable of all kinds of things, no matter who or what they are.

To a Narcissist, people are EITHER:
"higher status" or "lower status".
"Good" or "Bad".
"Weak" or "Strong".
"Correct" or "Incorrect".
"Capable" or "Incapable".
"Smart" or "Stupid".
"Fun" or "Boring".
"Responsible" or "Irresponsible".
"Right" or "Wrong".
"Knowledgeable" or "Ignorant".
"Good" or "Evil".
"Nice" or "Mean".
"Genius" or "Not genius".
"One of us" or "One of them".
"Innocent" or "Dishonest".
"Attractive" or "Unattractive".
"Worthy" or "Unworthy".
"Good" or "Trash".
"Leader" or "Follower".
"Down to earth" or "Stuck up".
"Talented" or "Untalented".
"Above them" or "Below them".

Domination or Submission:
If  a person with Narcissism does not feel like he or she is successfully DOMINATING another person (superior to them, leading them, controlling them), he or she sees that person as TRYING TO DOMINATE and CONTROL THEM.
They are either THE LEADER, or they are THE FOLLOWER, in their minds; cooperation, peer connection, harmony, synchronicity, and kindred spirit is not something they easily understand.
So if a person STANDS UP to their domination, control, and disrespectful behaviors, they will perceive the person as TRYING TO CONTROL, DOMINATE, OR HUMILIATE THEM.

They can't seem to comprehend the difference between a person standing up for themselves against domination and disrespect, and a person trying to assert control over them.

A Narcissist will ONLY "cooperate" as an equal "peer" with a person whom they actually see as "ABOVE" themselves. 

This can also be seen in other illnesses and disorders.
Most children NATURALLY go through this as a normal developmental stage. Children who did not receive enough guidance for various reasons risk getting "stuck" in this way of perceiving themselves and the world.