In linguistics, linguistic competence is the system of unconscious knowledge that one knows when they know a language. It is distinguished from linguistic performance, which includes all other factors that allow one to use one's language in practice.
In approaches to linguistics which adopt this distinction, competence would normally be considered responsible for the fact that "I like ice cream" is a possible sentence of English, the particular proposition that it denotes, and the particular sequence of phones that it consists of. Performance, on the other hand, would be responsible for the real-time processing required to produce or comprehend it, for the particular role it plays in a discourse, and for the particular sound wave one might produce while uttering it.
The distinction is widely adopted in formal linguistics, where competence and performance are typically studied independently. However, it is not used in other approaches including functional linguistics and cognitive linguistics, and it has been criticized in particular for turning performance into a wastebasket for hard-to-handle phenomena.
Linguistic theory is concerned primarily with an ideal speaker-listener, in a completely homogeneous speech-community, who knows its (the speech community's) language perfectly and is unaffected by such grammatically irrelevant conditions as memory limitations, distractions, shifts of attention and interest, and errors (random or characteristic) in applying his knowledge of this language in actual performance. ~Chomsky,1965(p. 3)
Chomsky differentiates competence, which is an idealized capacity, from performance being the production of actual utterances. According to him, competence is the ideal speaker-hearer's knowledge of his or her language and it is the 'mental reality' which is responsible for all those aspects of language use which can be characterized as 'linguistic'. Chomsky argues that only under an idealized situation whereby the speaker-hearer is unaffected by grammatically irrelevant conditions such as memory limitations and distractions will performance be a direct reflection of competence.
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