  Collisions with hidden terminals is a major cause of performance degradation
in 802.11 and likewise wireless networks. Carrier sense multiple access with
collision avoidance (CSMA/CA) is utilized to avoid collisions at the cost of
spatial reuse. This report studies receiver design to mitigate interference
from hidden terminals. A wireless channel model with correlated fading in time
is assumed. A message-passing approach is proposed, in which a receiver can
successfully receive and decode partially overlapping transmissions from two
sources rather than treating undesired one as thermal noise. Numerical results
of both coded and uncoded systems show the advantage of the receiver over
conventional receivers.
