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Uhhhm!They hunt more at dawn and dusk rather than middle of the night.I guess they hunt when they get hungry,probably all night long between dusk and dawn more so in this part of the country at night...
Heh, my point was just that coyotes see better when there's a little light than when there's not. Obviously, they do what they need to do, depending on environmental pressure; for instance, animals that are normally nocturnal will hunt in the middle of the day if the weather is extremely cold at night and warmer in the day...
I would imagine that coyotes, much like foxes, would tend to rely on other senses when hunting in a very dark environment. Subsequently, if your decoy isn't presenting other attractors, like scent or sound, then it isn't likely to draw their attention when there's little to no light out... hence the LED, since they are capable of detecting very low levels of illumination.
The nice thing about the Quiver Critter is that the fur comes off of the decoy, like a hand puppet, so if you happen to have a real rabbit handy you can take the fake fur and rub it all over the rabbit and its cage to get a nice rabbit stink on it

that helps if you're not going to use a light on the decoy when it's dark out...