| Abstract:
Despite the existence of vigorous theoretical basis for cooperatives little
attention has been paid to it in Iran. At the same time, little use has been
made of the quantitative models for analyzing the effects and impacts of
cooprative activities in economic literature. In this study, followed by a
review of literature on cooperaion theory, a simple quantitative model was
examined. This model considers various behavior and equilibrium
conditions for cooperatives. The model was simulated using the data and
information of Iranian dairy industry. Results of this study showed that
under cooperative activities the price of final product could he reduced,
while the price of raw product, (i.e. inputs) could he raised. Therefore, the
welfare of raw product producers and total payments to them were
increased. The volume of production of final product and purchases of
raw product were also increased as a result of cooperation. These results
indicate that cooperatives can play a very significant and effective role in
promoting the welfare and income of producers of raw products and
consumers of final products.
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