If there are 8 competitors, and two of them tie for second, the next competitor is fourth place because 3 others have finished in front of them. And last place is still 8th, not 7th.
It’s done this way to maintain integrity down the line according to how many opponents finished in front of each competitor.
If two people tie for first place, they’re both technically in first and second place. The person ranked third has two people ahead of them, so it wouldn’t make sense for them to be in second place.
If you gave birth to twins and then to another single child after that, would you call the single child your second child just because the first two shared a birthdate?
OK lets use your example, two participants tie for first place.
Now consider the next best person after that. They are the 3rd best person in the contest, since 2 people finished with a better result, so it makes sense for them to come 3rd.
Put another way: yes Bob’s score was the 2nd best score, but 2 people got a better score so Bob’s the 3rd best participant. So he comes 3rd.
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