In economic conditions, this conflicted choice might be modeled as a trade-off concerning the result utility gained by hedging (e.g., money) as well as diagnostic fees it incurs (e.g., disloyalty). persons make inferences regarding their beliefs and id from their actions. If a person is uncertain about an element of her or his identity, like the extent to which they values a prospect or group, hedging may possibly sign to her or him that he or she will not be as devoted to that candidate or group as he / she initially thought. Should the diagnostic price of this self-sign and also the ensuing identification transform are considerable, it may outweigh the result utility of hedging, and he or she may possibly reject even quite generous hedges.[fifty nine]
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