@TechReport{iza:izadps:dp4319, author={Carrillo-Tudela, Carlos and Menzio, Guido and Smith, Eric}, title={Job Search with Bidder Memories}, year={2009}, month={Jul}, institution={Institute of Labor Economics (IZA)}, address={Bonn}, type={IZA Discussion Paper}, number={4319}, url={https://www.iza.org/index.php/publications/dp4319}, 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.}, keywords={wage determination;recall;job search;Diamond paradox}, }