In this article, the authors suggest a Coasean approach to analyze costs and benefits in government regulations. They argue that market problems, caused by things like externalities, can be due to transaction costs rather than true market failures. Their idea is that if transaction costs are low enough, competition can push people to find efficient solutions on their own without strict regulations. Under this approach, a rule should only be made if it helps lower transaction costs. People involved will naturally adjust their actions to save money and time. This means regulators might not need to calculate total costs and benefits themselves since the affected parties are best at knowing these details.