Citation

Optimal foraging, the marginal value theorem

Eric L. Charnov

Theoretical Population Biology (1976)

TL;DR

Organisms should leave patches when marginal return equals environmental average return

Charnov's marginal value theorem is the foundational mathematical framework for the entire chapter. It formalizes when organisms should leave a resource patch: when marginal gain equals average gain across the environment. This principle directly translates to business decisions about when to exit customers, markets, or products.

The theorem's counter-intuitive insight - leave while food remains - challenges the common business instinct to maximize extraction from current opportunities. Charnov's work provides the mathematical proof that optimizing across environment beats optimizing within patches.

Key Findings from Charnov (1976)

  • Organisms should leave patches when marginal return equals environmental average return
  • Optimal departure occurs before resources are exhausted
  • Travel time between patches affects optimal residence time
  • The theorem can be graphically solved using tangent lines to gain curves

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