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In financial terms, this conflicted conclusion is usually modeled to be a trade-off amongst the end result utility attained by hedging (e.g., money) luxury138 as well as diagnostic expenses it incurs (e.g., disloyalty). People make inferences regarding their beliefs and identification from their actions. If an individual is unsure about an element of their identity, including the extent to which they values a applicant or crew, hedging may signal to her or him that she or he will not be as devoted to that prospect or team as they originally considered. If the diagnostic price of this self-signal plus the resulting identity transform are sizeable, it may well outweigh the result utility of hedging, and they could reject even very generous hedges.[fifty nine]
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[1] the result in the wager is usually instant, such as a solitary roll of dice, a spin of the roulette wheel, or perhaps a horse crossing the finish line, but longer time frames are also common, allowing wagers on the result of the upcoming athletics contest and even a complete sports activities year.
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