RARs function through a ligand-dependent mechanism. Upon binding to retinoic acid, RARs undergo conformational changes that facilitate their dimerization with retinoid X receptors (RXRs). The RAR-RXR heterodimers then bind to retinoic acid response elements (RAREs) in the promoter regions of target genes, regulating their transcription. This ligand-receptor interaction is crucial for the precise control of gene expression in various cellular processes.