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Re-encoding MP3 reduces quality

If we have an MP3 file and we decode it to an uncompressed WAV file and then later encode it to MP3 again at the same sample rate - why is it that the quality gets degraded? This is a past exam ...
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3answers
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Best lossy format for music?

Which one of the lossy file formats like Ogg, AAC, Mp3, Wma has the best quality/size ratio? I've seen that AACs are smaller than MP3 at the same bitrates. Do they sound worse than MP3?