Zellers and Wal-Mart 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 table displays the payoffs for each firm associated with lowering prices (or not), given the other firm's decision.

If given the opportunity, how much would Zellers be willing to spend for the right to move first?

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And Wal-Mart And Wal-Mart's Then, Zeller's If Zellers Decides to... Keep prices the same Decides to... Profits are... Profits are... Keep prices the same Drop prices Keep prices the same Drop prices $200MM $250MM Keep prices the same Drop prices Drop prices $150MM $280MM $230MM $190MM $180MM $220MM