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In economic terms, this conflicted determination could be modeled to be a trade-off amongst the end result utility obtained by hedging (e.g., funds) as well as the diagnostic fees it incurs (e.g., disloyalty). folks make inferences about their beliefs and identification from their actions. If a person is uncertain about an facet of their id, such as the extent to which he / she values a applicant or staff, hedging may signal to her or him that they is not really as devoted to that applicant or workforce as they originally thought. Should the diagnostic cost of this self-signal and the resulting identity modify are substantial, it could outweigh the outcome utility of hedging, and he or she may perhaps reject even pretty generous hedges.[fifty nine]
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