Half saturation constant

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What is the meaning of the half saturation constant in the following system, describing the interaction between a population of predators of size $y$ and a population of preys of size $x$? $$\dot x=x(a-bx)-c\frac{xy}{my+x}\qquad\dot y=-dy+f\frac{xy}{my+x}$$ I am interested in what the parameter $m$ represents. In this article it is mentioned that it is the half saturation constant.

Does it mean the prey density when the predator population is its half maximal capacity?

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This is at best an abuse of terminology. For a predator dynamics $$\dot y=-dy+y\frac{fx}{m+x}$$ the specific growth rate of the predator population due to the preys is $$r=\frac{fx}{m+x}$$ which reaches its maximum $r_{\text{max}}=f$ when $x\to\infty$ (that is, at saturation). Then, $r=\frac12r_{\text{max}}$ when $x=m$ (hence the name, half saturation constant).

In the model you are considering, the analogue of $r$ is $$\bar r=\frac{fx}{my+x}$$ hence $\bar r_{\text{max}}=f$ again, and $\bar r=\frac12\bar r_{\text{max}}$ when $x=my$. Thus $m$ would be the half saturation constant in the sense that half saturation (that is, $\bar r$ is at one half of its maximal value) occurs when the ratio $x/y$ is at $m$.

This is the best analogue I could find.

Note anyway that in the version you are considering, $m$ is dimensionless instead of homogenous to $x$ and $y$, hence an interpretation of $m$ as a population such that this or that happens, is impossible.