An important but understudied modality for eavesdropping between predators and prey is olfaction, especially between non-mammalian vertebrate predators and their prey. Here we test three olfactory eavesdropping predictions involving an apex reptilian predator, the sand goanna Varanus gouldii, and several species of its small mammalian prey in arid central Australia: 1) small mammals will recognize and avoid the odour of V. gouldii; 2) V. gouldii will be attracted to the odour of small mammals, especially of species that maximize its energetic returns; and 3) small mammals will be less mobile and will show higher burrow fidelity where V. gouldii is absent compared with where it is present. As expected, we found that small mammals recognized and avoided faecal odour of this goanna, feeding less intensively at food patches where the odour of V. gouldii was present than at patches with no odour or a pungency control odour. Varanus gouldii also was attracted to the odour of small mammals in artificial burrows and dug more frequently at burrows containing the odour of species that were energetically profitable than at those of species likely to yield diminishing returns. Our third prediction received mixed support. Rates of movement of three species of small mammals were no different where V. gouldii was present or absent, but burrow fidelity in two of these species increased as expected where V. gouldii had been removed. We conclude that olfaction plays a key role in the dynamic interaction between V. gouldii and its mammalian prey, with the interactants using olfaction to balance their respective costs of foraging and reducing predation risk. We speculate that the risk of predation from this apex reptilian predator drives the highly unusual burrow-shifting behaviour that characterizes many of Australia's small desert mammals.
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