"Saudi Arabia, the world's top exporter, launched a price war over the weekend. The move followed the implosion of an alliance between the OPEC cartel, led by Saudi Arabia, and Russia... The kingdom is also reportedly planning to lift production to over 10 million barrels a day ... The coronavirus has undermined energy demand worldwide, but especially in China, which is now the number one importer of crude oil, guzzling roughly 10 million barrels a day.

Assume that Saudi Arabia and Russia are the only two profit-maximizing crude oil producers in the world. Each country has two strategies, to cut production or to raise production. The payoffs, given in billions of dollars per day, are shown in the matrix below.

RUS

Cut Production Raise Production

Cut production 3 for RUS 4 for RUS

SAU 3 for SAU 1 for SAU

Raise production 1 for RUS 2 for RUS

4 for SAU 2 for SAU

Suppose that SAU and RUS formed an alliance and both agreed on cutting their crude oil productions. With the help of game theory, briefly explain why this alliance is unstable, i.e. each country has a strong incentive to deviate from the agreement.