Mobile Adhoc Networks (MANET) are susceptible to jamming attacks which can inhibit data transmissions. There has been considerable work done in the detection of external jamming attacks. However, detection of insider jamming attack in MANET has not received enough attention. The presence of an insider node that has constantly monitored the network and is privy to the network secrets can acquire sufficient information to cause irreparable damage. In this paper we propose a framework for a novel reputation-based coalition game between multiple players in a MANET to prevent internal attacks caused by an erstwhile legitimate node. A grand coalition is formed which will make a strategic security defense decision by depending on the stored transmission rate and reputation for each individual node in the coalition. Our results show that the simulation of the reputation-based coalition game would help improve the network’s defense strategy while also reducing false positives that results from the incorrect classification of unfortunate legitimate nodes as insider jammers.