Cooperative Diversity transmission, a newly upcoming field in the area of wireless communication, has been receiving great attention. This diversity transmission exploits the spatial diversity created by antenna sharing to improve the performance of a wireless network. The working of a cooperative diversity system is such that a source node communicates with a destination node with the help of another partner node. One important question usually raised regarding the operation of this system is that of the amount of power allocation among partnering nodes. Initial stages of research in this area had assumed equal distribution of power resources between the nodes. This approach has been proven as clearly suboptimal. Several works to allocate power optimally are coming up. In this project, optimal power allocation is used as a key approach to analyze the rate performance of the system. This is done with the help of a parameter called cooperative ratio which is the ratio of the power used for cooperative transmission to total power. Simulation results to support the analysis have also been provided.