PoKeRFoRNiA
Legend
Bronze Level
In a typical payout game, with first place getting the lions share, you can use the short stack to bully other players.
Harrington on Hold'Em Volume II: The Endgame
Page 298-301, Example 9
If you haven't read this book yet, buy it. It practically pays for itself.
Summary: You are the big stack (2.5x anybody at the table), there are 4 players left, and one has a been nursing a tiny stack and will be out soon which will move everybody up significantly in pay. You get involved with a middle stack and make what would normally be a dangerous bluff, but because the middle stack doesn't want to go out before the tiny stack he folds.
This is a good situation, so I would not be eager to knock out the has-no-hope-stack, and would expect myself to fold a wide range of hands in my SB to his BB.
Your situation is completely different though. You are not playing for a highly inflated first place payout. In your case, especially with the sit-out, you want the safest route to the win, which is eliminating the sitting shorty. If the other guy is going to keeps throwing chips, feh. He isn't making the unofficial cooperation play with you but getting mad and fighting back is far more risky, making it a route to take.
I'm inspired to start reading poker books now. TY SP. I learn this play through experience. Reading books can speed up the process and make me aware ahead of time of scenarios I can be faced with and how to approach them. I've only read super system I/II and Winning Low LImit Holdem. I gotta start reading more as those aren't enough.