  In the current work the effects of hop-by-hop packet loss and retransmissions
via ARQ protocols are investigated within a Mobile Ad-hoc NET-work (MANET).
Errors occur due to outages and a success probability function is related to
each link, which can be controlled by power and rate allocation. We first
derive the expression for the network's capacity region, where the success
function plays a critical role. Properties of the latter as well as the related
maximum goodput function are presented and proved. A Network Utility
Maximization problem (NUM) with stability constraints is further formulated
which decomposes into (a) the input rate control problem and (b) the scheduling
problem. Under certain assumptions problem (b) is relaxed to a weighted sum
maximization problem with number of summants equal to the number of nodes. This
further allows the formulation of a non-cooperative game where each node
decides independently over its transmitting power through a chosen link. Use of
supermodular game theory suggests a price based algorithm that converges to a
power allocation satisfying the necessary optimality conditions of (b).
Implementation issues are considered so that minimum information exchange
between interfering nodes is required. Simulations illustrate that the
suggested algorithm brings near optimal results.
