| Based on the perspective of the cooperatives the order pricing model was constructed and the conditions
under which the optimal expected profit existed was identified. The result showed the expected profit for contract with
reneging is no better than that for contract without reneging for the cooperatives. By numerical analysis for the uniformly
distributed market price, the expected profit function of the cooperatives was increasing, concave and constant in turn with
increasing the contract price in the mode of contract with reneging. With increasing the volatility of the market price, the
contract price was increased and the expected profit function of the cooperatives was convex. |
