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

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 household's 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 farmer's benefit increased as a result of cooperation. Furthermore, farmer's benefit is expected to go up due to increase in the number of cooperative groups.