In financial phrases, this conflicted determination is usually modeled being a trade-off between the end result utility received by hedging (e.g., income) and the diagnostic expenditures it incurs (e.g., disloyalty). Men and women make inferences regarding their beliefs and identification from their actions. If someone is unsure about an element of her or his identity, such as the extent to which he / she values a candidate or workforce, hedging could signal to him or her that they is not really as committed to that candidate or workforce as they originally believed. When the diagnostic cost of this self-sign as well as ensuing id adjust are substantial, it could outweigh the end result utility of hedging, and he / she may well reject even extremely generous hedges.[46]
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