In this article, the researchers look at how transaction costs in markets affect external impacts, like pollution. They suggest that government action can help lower these costs to deal with externalities better. Instead of just letting the market handle externalities, they say governments can reduce transaction costs to improve how markets work. The researchers argue that current government strategies for dealing with external impacts through taxes may not work well because they rely on too much information. They propose new ways to handle externalities, like creating feedback systems and making complex information simpler to help markets work better.