second-best


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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.

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Thus, screening is implemented through "self-election." [5] In particular, a quantity rationing policy achieves a second-best outcome.
They knew we are al l in this together and we won't accept second-best and at the same time the players know I won't accept second-best from them either.
16-23) evaluated the income effect of an international capital flow for a policy-active country and provided second-best (optimal under free commodity trade) policy recommendations regarding the control of such a flow.(2)
Summary: New Delhi [India], July 6 (ANI): The All India Football Federation (AIFF) has congratulated the national team after they achieved their second-best FIFA Ranking ever by reaching the 96th spot.
He was the second-best player of the season as Mapua center Allwell Oraeme went home with the MVP plum.
. A 1.74 out of 2.00 rating for 'bringing own youth products through to the first team', the second-best in League I..
In his first full season, Reading were the second-best behaved team in the Championship.
What starts out as a second-best solution for Jay turns into an exciting competition.
From a bottom-line stand point, such an auto sales rate would still qualify as the second-best year in history, he said.
WILLIAM Hague has become the racist British National Party's second-best recruiting sergeant, they claimed yesterday.
She was also openly lesbian, the "second-best" lover (after artist Romaine Brooks) of the uber-lesbian of 1920s Paris, Natalie Clifford Barney.
It needed a second-best jump to be taken into consideration, however, for Brown to gain the edge over his British teammate, for they both had an identical jump of 7.44m.