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In economic phrases, this conflicted final decision might be modeled like a trade-off among the result utility obtained by hedging (e.g., revenue) and the diagnostic fees it incurs (e.g., disloyalty). persons make inferences with regards to their beliefs and identity from their conduct. If someone is uncertain about an element of his or her identification, like the extent to which she or he values a applicant or team, hedging might signal to her or him that he or she just isn't as committed to that applicant or workforce as she or he at first believed. If the diagnostic expense of this self-sign plus the resulting identity adjust are significant, it might outweigh the end result utility of hedging, and he / she may reject even pretty generous hedges.[fifty nine]
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Ratio bias. Gamblers will prefer gambles with worse odds that happen to be drawn from a substantial sample (e.g., drawing a single red ball from an urn containing 89 red balls and eleven blue balls) to higher odds that happen to be drawn from a small sample (drawing a single red ball from an urn that contains nine red balls and a person blue ball).[sixty]
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