Game theory is a tool for analyzing strategic interactions that is becoming widely used in the applied social sciences, especially economics and administration. The purpose of this article was to analyze the competition and the process of strategic decision of the two main pay TV companies in the municipality of Sao Paulo: NET and SKY. Data were collected from ANATEL site and analyzed according to the theory of non-cooperative games of Stackelberg type. The results showed that the optimal solution of the competition between these two companies occurs when the leader NET provides a million signatures per month and the follower SKY offers five hundred thousand. In this situation, the revenue of NET is 0.80 and the SKY's is 0.40. These are the best results for the competitors, among the strategic profiles analyzed. The conclusion is that game theory is an important analysis tool of strategic interactions and also a facilitator of the decision-making process.
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