The Visible Hand? The Economics of Alfred Chandler

Abstract

In his great work The Visible Hand: The Managerial Revolution in American Business, Alfred Chandler argues that the modern managerial enterprise replaced the invisible hand of the market in coordinating the activities and allocating the resources of the US economy. But Chandler’s view of the invisible hand of the market is much too narrow. The modern managerial enterprise is not a substitute for the invisible hand of the market but an integral part of it. The Visible Hand is actually a history of the invisible hand of the market.