The researchers suggest that government regulations are often the result of negotiations between different groups, rather than just rules imposed by authorities. They show that when companies have bargaining power, they can get more benefits than if a standard rule was applied. This can lead to higher costs for consumers and overall loss of benefits. The study also finds that when information is not equal between companies, a negotiated approach can lead to a wider range of outcomes. The researchers argue that this bargaining process is a more realistic way to understand how regulations are made, compared to just setting rules without negotiation.