The "invisible hand" and the "social visible hand" in the economic mechanism of the market

The research starts from the hypothesis that the theories of the invisible hand and the statist ones were proven inefficient in reducing the tension between the need of order and governing, on one hand, and wishes, selfish interests, on the other hand. We propose a Third Way - The social neo-institutional economy - through which the "the visible hand" of the society, as a producer of reputation to balance the dysfunctions which appeared between the "invisible hand" and "the coercive hand of the state". SVH transforms the social opinion into an invisible institution which controls the side slips of the power and the weaknesses of the invisible hand. (C) 2014 The Authors. Published by Elsevier Ltd.