Stegastes diencaeus and S. dorsopunicans are mutually territorial Cari
bbean damselfishes. S. diencaeus is larger, grows faster and fives lon
ger than S. dorsopunicans. S. diencaeus is a habitat specialist that s
hares its primary habitat mainly with S. dorsopunicans. Field manipula
tions show that both S. diencaeus and S. dorsopunicans readily take ov
er living space from smaller, but not larger, heterospecific neighbors
. Natural changes in the use of living space by both species occur fre
quently and adult S. diencaeus often aggressively usurp the living are
as of smaller S. dorsopunicans. Lunar and seasonal patterns of juvenil
e recruitment by S. diencaeus and S. dorsopunicans are similar. Large
size bestows competitive superiority on S. diencaeus by giving its adu
lts a superior ability to aggressively acquire living space, and by en
abling its juveniles to quickly escape the period when they lack a siz
e advantage. Hence they spend much of their lives as competitive domin
ants. There is no evidence that competitive advantages arising from la
rge size are offset either by other adult attributes or by differences
in temporal patterns of recruitment that affect priority of access to
space. The lottery hypothesis for species coexistence relies on patte
rns of abundance being determined by patterns of recruitment to vacant
space because different species have equal space-holding abilities. T
hese data show that the existence of such a mechanism is doubtful.