Consider a bargaining game among three political parties—the Conservative Party, the Liberal Democratic Party, and the Labor Party (each party is a player). There are T periods of bargaining, numbered t = 1,

c, T.

In each period, one party is the “proposer,” one is the “responder,” and the third is the “bystander.” The proposer makes an offer to the responder, who may then accept or reject. If the responder accepts, then the game ends and the offer is implemented. Otherwise, the game continues to the following period unless the period is T, in which case the game ends. If the game ends without an offer being accepted, all parties get zero.