Abstract
A naive model of cannibalism assumes that it decreases intra-species competition, increasing per capita supply of resources. As a result, there is a cycle between prey population and carrying capacity of the environment, which oscillates around cannibals' population. The model is applied to examine the behaviour of firms in an oligopolistic industry. From this exercise emerges a general model of cannibalism which shows the economic rationale for the existence of cannibalistic strategies and has stronger properties than the naive model.
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