Functional Response
However, competitive efforts face diminishing returns as target market share declines, similar to predator satiation limiting kill rates.
Functional response describes how individual predator kill rates change with prey density. Three types exist:
Type I (linear): Kill rate increases linearly with prey density up to some maximum, then plateaus. Rare in nature but approximates some passive predation like filter feeders.
Type II (hyperbolic): Kill rate increases rapidly at low prey density but saturates at high density due to handling time or satiation. Most common functional response. Wolves killing moose are limited by how many they can consume even when moose are abundant.
Type III (sigmoid): Kill rate is low at low prey density (predators ignore rare prey), accelerates at intermediate density (predators learn search images), and saturates at high density. Provides strongest stabilizing effect because rare prey experience low predation while abundant prey experience high predation.
Business Application of Functional Response
As incumbent market share increases, challenger competitive intensity increases - challengers focus R&D on segments where incumbents are most profitable, price aggressively, and market extensively. However, competitive efforts face diminishing returns as target market share declines, similar to predator satiation limiting kill rates.