Between 2004 and 2021, global aerospace giants Airbus and Boeing were embroiled in a series of World Trade Organization (WTO) disputes over what each side argued were illegal subsidies received by the rival. Boeing lobbied the US government to file complaints against European government 'launch aid' subsidies to Airbus and low-rate loans from the European Investment Bank. Airbus lobbied EU governments to challenge indirect US government subsidies to Boeing in the form of research grants for technology development from NASA, inflated military procurement contracts from the Department of Defense, Washington state corporate tax breaks to locate a production plant in Boeing's Everett campus, and other state incentives from Illinois and Kansas.
In a series of rulings between 2011 and 2020, the WTO found that both companies had received billions in unfair government subsidies, in violation of international trade rules. In June 2021, the EU and the US agreed to set aside their disputes without implementing multi-billion-dollar penalties in the form of tariffs, as the WTO rulings allowed them to do.
Which of the models of oligopolistic competition we have studied is the most appropriate one to represent and analyze this market? Why? Explain.