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In economic terms, this conflicted selection could be modeled as being a trade-off amongst the outcome utility obtained by hedging (e.g., funds) and the diagnostic costs it incurs (e.g., disloyalty). folks make inferences regarding their beliefs and id from their behavior. If somebody is uncertain about an element of her or his identification, like the extent to which they values a prospect or workforce, hedging may perhaps sign to her or him that he or she is not as dedicated to that candidate or workforce as he or she initially thought. If your diagnostic price of this self-signal and also the resulting identity alter are considerable, it could outweigh the result utility of hedging, and he / she may well reject even quite generous hedges.[59]
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