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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