second-best

(redirected from second best)
Also found in: Dictionary, Thesaurus, Legal, Idioms, Wikipedia.

second-best

adj. (of an economy) departing from an optimal pattern of resource allocation (see PARETO OPTIMALITY) because, for example, of MONOPOLY distortions and EXTERNALITIES.

If the production of a product such as a chemical leads to environmental POLLUTION, then the marginal SOCIAL COST of producing that output will exceed the marginal PRIVATE COST, and the economy will depart from an optimal pattern of resource allocation. In this ‘second-best’ situation, the government can improve matters by imposing a ‘pollution tax’ on offending chemical firms. This will, on the one hand, provide an incentive for the firms to adopt less polluting production processes and, on the other hand, to the extent that the tax is passed on to chemical buyers, will force buyers to pay the full social costs of the products they consume. See WELFARE ECONOMICS.

Mentioned in ?
References in periodicals archive ?
Sonny's plan centers on buying a second hotel -- to be christened, of course, "The Second Best Exotic Marigold Hotel.
It may be mentioned that the Raksha Mantri Trophy for Best Service Hospital was instituted in 1989 and the trophy for the Second Best Hospital was instituted in the year 2010 to identify and acknowledge excellence in patient care and hospital management among Command and equivalent hospitals in the Army, Navy and Air Force.
The Astra hatchback model was second best in its market, company figures show.
Brett Skyrme's 10oz was the second best and Kane Chivers third with 6oz.
Second Best Planning Problem For each [gamma] [member of] [0, +[infinity]], find an allocation c = ([c.
I don't play for second best and TAPPI is not going to play for second best.
Black-and-white maps to the towns that house these best of the best locales round out Best Food In Town, especially recommended for Heartland travelers who don't want to settle for second best while on the road.
The three-year All-American was right on with his prediction, producing a national collegiate season best of 66 feet, 1 inch, the fifth-best mark in UCLA history, in a runner-up effort behind former Bruins great John Godina, whose winning 67-11 is second best in the world this year.
For an hour we were second best in our box and second best in their box.
NORDIC BUSINESS REPORT-8 May 2003-Frontline Ltd posts second best quarter ever(C)1994-2003 M2 COMMUNICATIONS LTD http://www.
American consumers deserve the best system to save lives, not the second best system to save auto companies money.
The goal of the third stage is to choose the most suitable alternative, considering the client's preferences and capabilities, and, if necessary, to select additional, second best alternatives.