Numerical Response
As incumbent profitability increases, challengers can justify larger R&D investments, more engineers, more products, more market segments attacked.
Numerical response describes how predator population size changes with prey density through two mechanisms:
Reproductive response: When prey are abundant, predators have higher reproductive success - more offspring survive, litter sizes increase, breeding frequency increases. This increases predator numbers with time lag (generation time). Lynx have larger litters when hares are abundant.
Aggregative response: Predators move to areas with abundant prey, concentrating predator density where prey are most available. This spatial redistribution happens faster than reproductive response. Seabirds aggregate at locations with abundant fish schools.
Both responses create negative feedback, but numerical response lags create oscillations: by the time predator populations increase substantially through reproduction, prey may already be declining.
Business Application of Numerical Response
As incumbent profitability increases, challengers can justify larger R&D investments, more engineers, more products, more market segments attacked. Higher incumbent profits make challenger competitive efforts more viable. Conversely, when incumbents are weakened, challengers find fewer profitable niches to attack. These investment responses lag market conditions, creating oscillatory dynamics.