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In economic terms, this conflicted selection is often modeled for a trade-off among the end result utility gained by hedging (e.g., revenue) and the diagnostic this expenses it incurs (e.g., disloyalty). individuals make inferences about their beliefs and identity from their actions. If someone is unsure about an facet of their id, including the extent to which he / she values a applicant or team, hedging may possibly sign to her or him that he / she isn't as dedicated to that applicant or group as he or she initially thought. Should the diagnostic cost of this self-signal plus the resulting id alter are sizeable, it might outweigh the outcome utility of hedging, and he / she might reject even very generous hedges.[fifty nine]
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