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Job search with bidder memories

Carlos Carrillo-Tudela (), Guido Menzio () and Eric Smith ()

No 2009-28, FRB Atlanta Working Paper from Federal Reserve Bank of Atlanta

Abstract: This paper revisits the no-recall assumption in job search models with take-it-or-leave-it offers. Workers who can recall previously encountered potential employers in order to engage them in Bertrand bidding have a distinct advantage over workers without such attachments. Firms account for this difference when hiring a worker. When a worker first meets a firm, the firm offers the worker a sufficient share of the match rents to avoid a bidding war in the future. The pair share the gains to trade. In this case, the Diamond paradox no longer holds.

Date: 2009
New Economics Papers: this item is included in nep-lab
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Related works:
Journal Article: JOB SEARCH WITH BIDDER MEMORIES (2011) Downloads
Working Paper: Job Search with Bidder Memories (2009) Downloads
Working Paper: Job Search with Bidder Memories (2009) Downloads
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