I believe a better way to put it is:
"First choice" votes are tallied. If there is no clear winner (50% majority), a certain number of absolutely-losing candidates are removed from the running (all but the top two, or whatever, depending on interpretation.) The votes of the just-now-eliminated candidates are re-distributed to the remaining candidate based on the 2nd and third choices of the voters in question.
I.e.,
Bush and Gore each get 49% of the vote. Nader gets 1%, and Alf gets 1%. Nader and Alf are both out of the running, and the votes they had received are given to Bush and Gore based on the voter's preferences. If you voted Alf #1, Bush #2, your vote is tallied for Bush after Alf is eliminated; if you voted Alf #1, Nader #2, Gore #3, your vote is tallied for Gore after Alf and Nader are eliminated.
It's still one (wo)man, one vote. But you can show your support for snowball-chance-in-hell candidates without having to sacrifice the 'lesser of two evils' consideration.
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