I am reading the example of large firms' operation when finking option is given here.
A "large" player who suffers disproportionately more from complete finking may act cooperatively even when the small fry are finking. Thus Saudi Arabia acts as a swing producer in OPEC, cutting its output to keep prices high when others produce more; and the United States bears a disproportionate share of the costs of its military alliances. Finally, if the group as a whole will do better in its external relations if it enjoys internal cooperation, then the process of biological or social selection may generate instincts or social norms that support cooperation and punish cheating.
Regarding the last sentence, I understand that if the firms already colluded together, in a more competition market, they will enjoy continue their cooperation because the cooperation has been established and maintained for a long time( process of social selection may generate instincts or social norms that support cooperation and punish cheating)
However, I cannot understand the example of Saudi Arabia and US as above, could you please explain it to me?
