The Skill-Performance Relationship
Note: The figure shows the relationship among preferences, context, and incentives in determining the effort and skills applied in any task. Line (1) reflects the role of preferences in setting incentives for a given task. Line (2) reflects that preferences can be influenced by context, social, cultural, and otherwise. Line (3) represents that preferences can be considered a skill in many important life tasks, and the mischaracterizations that is implied by the skill-preference dichotomy.