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In financial terms, this conflicted selection is often modeled like a trade-off involving the result utility gained by hedging (e.g., income) as well as the diagnostic fees it incurs (e.g., disloyalty). individuals make inferences about their beliefs and identification from their conduct. If a person is unsure about an facet of his / her identity, like the extent to which they values a applicant or staff, hedging might sign to him or her that she or he will not be as devoted to that candidate or crew as he / she initially considered. In the event the diagnostic expense of this self-signal plus the resulting identification improve are considerable, it might outweigh the result utility of hedging, and he or she may reject even really generous hedges.[58]
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