We classify order $3$ linear difference operators over $\mathbb{C}(x)$ that are solvable in terms of lower order difference operators. To prove this result, we introduce the notion of absolute irreducibility for difference modules, and classify modules that are irreducible but not absolutely irreducible by using restricted and induced modules. We also show how restriction and induction give coordinate-free formulations of sectioning and interlacing of sequences.
Comment: 19 pages, revised Sections 3 and 8, updated exposition