In economic phrases, this conflicted determination may be modeled to be a trade-off involving the result utility received by hedging (e.g., income) as well as diagnostic charges it incurs (e.g., disloyalty). persons make inferences about their beliefs and identity from their behavior. If somebody is unsure about an facet of their identification, such as the extent to which she or he values a prospect or staff, hedging may well signal to her or him that they isn't as dedicated to that candidate or workforce as he or she at first thought. In case the diagnostic expense of this self-sign as well as the resulting identification change are sizeable, it may outweigh the result utility of hedging, and he or she could reject even quite generous hedges.[fifty nine]
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