  We develop a theory of repeated interaction for coalitional behavior. We
consider stage games where both individuals and coalitions may deviate.
However, coalition members cannot commit to long-run behavior, and anticipate
that today's actions influence tomorrow's behavior. We evaluate the degree to
which history-dependence can deter coalitional deviations. If monitoring is
perfect, every feasible and strictly individually rational payoff can be
supported by history-dependent conventions. By contrast, if players can make
secret side-payments to each other, every coalition achieves a coalitional
minmax value, potentially reducing the set of supportable payoffs to the core
of the stage game.
