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In economic phrases, this conflicted conclusion could be modeled as being a trade-off involving the outcome utility obtained by hedging (e.g., income) as well as diagnostic charges it incurs (e.g., disloyalty). People today make inferences regarding their beliefs and identification from their actions. If a person is unsure about an element of his / her identification, including the extent to which he / she values a applicant or team, hedging may perhaps signal to her or him that she or he is not really as devoted to that prospect or workforce as he or she initially believed. In the event the diagnostic cost of this self-signal along with the ensuing identification modify are sizeable, it may well outweigh the result utility of hedging, and they may well reject even very generous hedges.[46]
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