first best
In economic theory, 'first best' refers to an ideal situation where all optimality conditions are met without any constraints.
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Definition
C1Economic Theory
(technical, academic)A scenario where the optimal outcome is achieved without any constraints or limitations.
Example
- In a first-best world, resources are allocated in the most efficient way possible.
- Economists often compare real-world situations to the first-best scenario to identify inefficiencies.
Similar
Terms that have similar or relatively close meanings to "first best":
second bestfirst choicecome firstthird bestnumber onefirst thingbest ofdouble firsttop prioritynumero unotop tierin the first placefirst fiddlefirst and last