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In financial terms, this conflicted selection may be modeled as being a trade-off in between the outcome utility obtained by hedging (e.g., funds) as well as the diagnostic costs it incurs (e.g., disloyalty). persons make inferences about their beliefs and identity from their actions. If an individual is uncertain about an facet of his or her identification, such as the extent to which he or she values a candidate or group, hedging could signal to her or him that he or she is not really as dedicated to that prospect or group as they at first considered. In the event the diagnostic price of this self-signal as well as the ensuing id modify are significant, it may outweigh the outcome utility of hedging, and he / she may perhaps reject even quite generous hedges.[58]
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