"One way that might work would be ... for cheats to detect and police themselves ..."

One way this type of behavior might occur would be the case in which an individual believes that he is being watched by an omniscient supernatural being. The economist goes on to say that indeed psychological studies have shown that people modify their behavior if they believe they may be being watched, even if only by a supernatural being.

Upon reading this I saw a similarity between the possible role religion may play in group cooperation and the techniques employed in many totalitarian regimes at various points, as well as in George Orwell's totalitarian vision of the future.

Communism effectively outlawed or marginalized religion, but still needed to maintain a high level of social control. To substitute, communism had to come up with completely new control mechanisms. George Orwell invented technology that simulated an omniscient all-knowing being. Actual communist regimes relied on other mechanisms, including secret police and large networks of informants (or the perception of the existence of such a network) to regulate behavior.

In terms of group conformity, the techniques employed by communism appear not to have been as effective in the long term at holding groups together as religion.

Any prospective future regime with totalitarian goals would likely achieve greater and longer lasting conformity through the use of religious techniques - either that or the technological implementation of an effective all-seeing omniscient presence in the lives of citizens.