third best adjective 1noun 1forms 1 adjective1 •Characterized by being a third best in the below sense.This reduces the inflation bias but brings higher employment variability than is optimal, a "stabilization bias," and hence leads to a third-best equilibrium rather than the second best. — 1997 noun1 •A second best that is second best relative to a situation that is itself a second best. formsthird bests
