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In financial conditions, this conflicted selection may be modeled as a trade-off among the result utility obtained by hedging (e.g., funds) along with the diagnostic expenditures it incurs (e.g., disloyalty). men and women make inferences about their beliefs and identity from their habits. If someone is unsure about an element of his / her identification, like the extent to which he or she values a candidate or workforce, hedging may sign to him or her that he / she just isn't as committed to that prospect or staff as he / she at first considered. In the event the diagnostic cost of this self-sign and the ensuing identity change are significant, it could outweigh the outcome utility of hedging, and he / she may perhaps reject even pretty generous hedges.[fifty nine]
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