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In economic phrases, this conflicted conclusion is usually modeled to be a trade-off in between the outcome utility gained by hedging (e.g., income) along with the diagnostic fees it incurs (e.g., disloyalty). People make inferences with regards to their beliefs and id from their habits. If anyone is uncertain about an element of her or his identity, like the extent to which she or he values a prospect or crew, hedging may well sign to him or her that she or he is not really as dedicated to that prospect or group as he / she originally considered. In case the diagnostic cost of this self-signal and also the resulting identification change are sizeable, it may outweigh the end result utility of hedging, and she or he might reject even really generous hedges.[59]
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