In economic conditions, this conflicted determination could be modeled for a trade-off in between the result utility received by hedging (e.g., money) as well as diagnostic costs it incurs (e.g., disloyalty). Men and women make inferences with regards to their beliefs and id from their conduct. If an individual is uncertain about an facet of his / her identity, such as the extent to which they values a prospect or staff, hedging may well sign to her or him that he or she just isn't as committed to that prospect or staff as he / she initially believed. In case the diagnostic cost of this self-sign and also the ensuing identity modify are substantial, it might outweigh the outcome utility of hedging, and she or he may well reject even very generous hedges.
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