Practice Makes Perfect: On Professional Standards
AbstractPractising is a matter of increasing the reliability of ones skills rather than relying on a tool or a strike of genius to get it right. Once perfection has been achieved the individual will aim for higher quality since the effort is more likely to be worthwhile. Furthermore because the returns to achieving perfection are higher the harder it is to achieve, the perfectionist equilibrium only arises in situations where genius is rare and reliability is low. From this follows that as tools improve, even though perfection then has become easier to achieve, professional standards may nonetheless decline. This mechanism is captured in an oligopoly model, where the failure rate and the quality are endogenously determined.
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Bibliographic InfoPaper provided by Faculty of Economics, University of Cambridge in its series Cambridge Working Papers in Economics with number 0728.
Date of creation: May 2007
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human capital; skill; technological change; quality; standards; learning; cultural economics; imperfect competition; patent race.;
Find related papers by JEL classification:
- D2 - Microeconomics - - Production and Organizations
- D43 - Microeconomics - - Market Structure and Pricing - - - Oligopoly and Other Forms of Market Imperfection
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
- L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-06-02 (All new papers)
- NEP-BEC-2007-06-02 (Business Economics)
- NEP-HRM-2007-06-02 (Human Capital & Human Resource Management)
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