Coalition formation has been documented in a diverse array of taxa, yet the
re has been little formal analysis of polyadic interactions such as coaliti
ons. Here, we develop an optimality model which examines the role of winner
and loser effects in shaping coalition formation. We demonstrate that the
predicted patterns of alliances are strongly dependent on the way in which
winner and loser effects change with contestant strength. When winner and l
oser effects decrease with the resource-holding power (RHP) of the combatan
ts, coalitions will be favoured between the strongest members of a group, b
ut not between the weakest. If, in contrast, winner and loser effects incre
ase with RHP, exactly the opposite predictions emerge. All other things bei
ng equal, intervention is more likely to prove worthwhile when the benefici
ary of the aid is weaker (and its opponent is stronger), because the benefi
ciary is then less likely to win without help. Consequently, intervention i
s more probable when the impact of victory on the subsequent performance of
a combatant increases with that individual's strength because this selects
for intervention in favour of weaker combatants. The published literature
on hierarchy formation does not reveal how winner and loser effects actuall
y change with contestant strength and we therefore hope that our model will
spur others to collect such data; in this light we suggest an experiment w
hich will help to elucidate the nature of winner and loser effects and thei
r impact on coalition formation in animals.