Markets and Medicine: Adam Smith and John Gregory

It is generally assumed that transactions in a free market are based on self-interest. It is equally assumed that transactions between doctor and patients are aimed at the interests of the patient and in that sense are benevolent, fiduciary or based on trust. Influential statements of these positions derive from Adam Smith and from Smith's neighbour and contemporary John Gregory. Examining the views of Smith and Gregory but moving the issues into a contemporary context this paper will argue that the opposition of self-interest and benevolence is misleading and that in the modern world medicine and the market have a similar ethical framework.