It’s not actually iterated, it just allows communication before the final agreement (or not). Simply assign values for each player for s and t, and you can calculate various equilibrium outcomes. For fun, it’s not guaranteed that either party knows the other’s utility function over (s,t), so you can make each player assign a distribution of utilities for the other, and figure out the optimum for each. Then negotiation can reveal some of it (or can fail and lead to sub-optimal outcomes).
It’s not actually iterated, it just allows communication before the final agreement (or not). Simply assign values for each player for s and t, and you can calculate various equilibrium outcomes. For fun, it’s not guaranteed that either party knows the other’s utility function over (s,t), so you can make each player assign a distribution of utilities for the other, and figure out the optimum for each. Then negotiation can reveal some of it (or can fail and lead to sub-optimal outcomes).