Zellers and Walmart are two of Canada’s largest retailers. To reflect the strong position of the Canadian dollar, each firm is considering lowering prices on some goods in Canadian stores. The following table displays the payoffs for each firm associated with lowering prices (or not), given the other firm’s decision:

If Zellers decides to . . .

And Walmart decides to . . .

Then, Zellers’s profits are . . .

And Walmart’s profits are . . .

Keep prices the same Keep prices the same

$200MM $250MM Keep prices the same Drop prices $150MM $280MM Drop prices Keep prices the same

$230MM $190MM Drop prices Drop prices $180MM $220MM If given the opportunity, how much would Zellers be willing to spend for the right to move first?