Study of Rural Household Cooperative Contracts in Production of Agricultural Crops for Firoozabad plain

اقتصاد و توسعه کشاورزی

Article 8, Volume 25, Issue 3, September 2011   

Document Type: Research Article

DOI: 10.22067/jead2.v1390i3.10842

Authors

F. Nasrnia^{* 1}; M. Bakhshoode²

¹Department of Agricultural Economics- Shiraz university-Shiraz-Iran

²Agricultural Economics, College of Agriculture, Shiraz University, Shiraz, Iran

Abstract

Abstract
A quantitative framework of combination of liner programming and cooperative game theory was used in this study to analyze and model cooperative contracts in production based on rural households' resources cooperation in Firoozabad plain. Revenues and costs in cooperation game theory have important rule to get agreement. Transaction cost function was used in cooperative costs accounting for moral hazard, contract costs and supervision of performance. Gross margin and individual cultivation plan for each case was calculated assuming that farmers who are individually cultivating can cooperate in various types. Results showed that farmers' benefit increased as a result of cooperation. Furthermore, farmers' benefit is expected to go up due to increase in the number of cooperative groups.

Keywords: Cooperative game, Linear programming, Firoozabad plain, Game theory, Transaction cost