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This paper aims to explore the influence of marketing investment on drug diffusion processes, to analyze the heterogeneity of the diffusion characteristics and to understand the drug diffusion patterns in the prescription and over-the-counter (OTC) markets.

The study introduces marketing investment into the Bass model. The authors use the Generalized Bass Model (GBM) to examine the influence of marketing efforts on drug diffusion in Chinese prescription and OTC markets.

The results of this study suggest that the imitation effect in the prescription drug market is greater than that in the OTC drug market; drug diffusion in the OTC market reaches saturation earlier in the diffusion process. Before reaching the critical state, the effect of marketing investment on drug diffusion in the OTC market is greater than that in the prescription market, and after the critical state, drug diffusion in the prescription market is more sensitive to marketing investment.

The study demonstrates the value of the GBM in empirical analyses of drug diffusion across two distinct markets, and the marketing regulation policies governments adopt have a powerful impact on the speed at which drugs become available in different markets. It enriches the extant product diffusion literature by highlighting the different diffusion patterns of the two segments of pharmaceutical market.

This paper aims to study the effects of order of market entry on market share in prescription (Rx) and over‐the‐counter (OTC) pharmaceutical drugs market.

Data on sales, price, direct‐to‐physicians (DTP) advertising, and direct‐to‐consumers (DTC) advertising for three Rx drugs categories and two OTC drugs categories were obtained for the period, January 1998 to December 1999. A log‐log statistical model was estimated using OLS methodology.

There is a significant order of entry effect on market share in both Rx and OTC drugs categories. This effect is higher in magnitude in the OTC category than in the Rx category. The effects of price, and DTP and DTC advertising are also significant. The differential effects of DTP and DTC advertising in the Rx and OTC categories are intuitive.

This study is unique in studying the differential effects of order‐of‐entry, and DTP and DTC advertising on market share in Rx and OTC drugs product categories.

This paper aims to explore market dynamics and strategic issues that contribute to a late entrant's success in achieving market leadership in the prescription (Rx) and over‐the‐counter (OTC) markets. In the Rx market, consumers must receive physicians' approval before purchasing the product. In the OTC market, consumers make the final drug choice.

Data on sales (both Rx and OTC) and direct‐to‐consumer advertising expenditures for nine gastrointestinal drug products were obtained covering a 17‐year period. Ordinary least squares regression was employed.

The findings show that late‐market entrants, despite existing challenges, can become market leaders. This applies to both the Rx and OTC markets, via varying mechanisms.

This study is unique in demonstrating the differential mechanism in achieving market success for late entrants in the Rx and OTC markets.

The purpose of this paper is to explain and analyze recent US Congressional, Obama Administration, and financial services industry initiatives to reform and regulate the market for OTC derivatives.

The paper outlines Congressional committee bills, other Obama Administration initiatives, and industry self‐regulatory initiatives and discusses underlying current issues such as which derivatives would and would not have to be cleared through central counterparties (CCPs); how standardized and customized derivatives would be distinguished from each other; potential margin, business conduct, reporting, and recordkeeping standards for OTC derivatives dealers; how fraud, market manipulation, and other market abuses would be policed; possible limitations on the types of parties that may participate in unregulated derivatives; possible resolution of the sometimes confusing and overlapping authority of the SEC and CFTC over OTC derivatives; how and by which federal or state authority credit default swaps (CDS) might be regulated; the potential for regulatory arbitrage; and the danger that stringent regulation in the USA will drive OTC derivatives business offshore.

Unlike markets for other financial instruments, derivatives market participants, largely through ISDA, have for some time cooperated closely with the New York Fed and engaged in a myriad self‐policing activities. Time will tell whether this existing framework, combined with the redoubled self‐policing efforts of market participants, will cause policymakers to seek appropriate legislation that will not threaten the preservation of the OTC derivatives market in the USA.

The paper presents a clear and detailed guide and explanation of recent regulatory initiatives and underlying issues.

The over‐the‐counter (OTC) drug market is highly competitive, and consumer advertising is a prominent influence in OTC drug purchase and consumption. Given current marketplace conditions, it is important to summarize OTC drug advertising research. This paper aims to review the state of the public research literature on OTC drug advertising and provide a research agenda derived from the findings.

A literature review was conducted to identify the key themes in OTC drug advertising research and secondary data were collected about the regulation, nature, functions, and scope of OTC drug advertising.

Most pharmaceutical advertising studies have focused on prescription drugs, including the majority of direct‐to‐consumer advertising investigations. OTC drug advertising has received considerably less empirical attention. Since the mid‐1970s, only 24 OTC drug advertising studies have appeared sporadically in the literature. The cumulative findings are interesting and suggestive but dated, fragmented, and incomplete. Though research interest has waned, OTC drug markets and advertising spending have not. Advertising remains a prominent OTC drug purchase and consumption driver, likely spurred on by self‐medication and Rx‐to‐OTC drug switching. The state of the public research, the social and policy implications of self‐medication, and the growing OTC drug market signal that it is time to revisit OTC drug advertising content, processes, and effects.

The paper puts the subject of OTC drug advertising back on the radar of communication, advertising, and pharmaceutical marketing researchers and offers an agenda of research questions derived from the reviewed literature to guide and stimulate future studies.

The rapid proliferation of drugs being switched from prescription (Rx) to over‐the‐counter (OTC) status within the USA has raised a number of important consumer behavior and public policy concerns. The following issue served as the focus of our research. Given the increasing assortment and widespread availability of Rx to OTC switch drugs, how might consumers’ health care preferences change? That is, what factors influence whether a consumer is more likely to visit their physician rather than self‐medicate symptoms of heartburn and indigestion with a new switch drug?

The purpose of this paper is to examine whether volatility implied from dollar-rupee options is an unbiased and efficient predictor of ex post volatility, and to determine which options market is a better predictor of future realized volatility and to ascertain whether the model-free measure of implied volatility outperforms the traditional measure derived from the Black–Scholes–Merton model.

The information content of exchange-traded implied volatility and that of quoted implied volatility for OTC options is compared with that of historical volatility and a GARCH(1, 1)-based volatility. Ordinary least squares regression is used to examine the unbiasedness and informational efficiency of implied volatility. Robustness of the results is tested by using two specifications of implied volatility and realized volatility and comparison across two markets.

Implied volatility from both OTC and exchange-traded options is found to contain significant information for predicting ex post volatility, but is neither unbiased nor informationally efficient. The implied volatility of at-the-money options derived using the Black–Scholes–Merton model is found to outperform the model-free implied volatility (MFIV) across both markets. MFIV from OTC options is found to be a better predictor of realized volatility than MFIV from exchange-traded options.

This study throws light on the predictive power of currency options in India and has strong practical implications for market practitioners. Efficient currency option markets can serve as effective vehicles both for hedging and speculation and can convey useful information to the regulators regarding the market participants’ expectations of future volatility.

This study is a comprehensive study of the informational efficiency of options on an emerging currency such as the Indian rupee. To the author’s knowledge, this is one of the first studies to compare the predictive ability of the exchange-traded and OTC markets and also to compare traditional model-dependent volatility with MFIV.

The purpose of this paper is to examine the extent of systemic risk and competition in over‐the‐counter (OTC) derivatives dealing. Using derivatives‐related failures during the 1990s, the authors draw conclusions that are pertinent to the recent financial market turmoil involving OTC derivatives.

The authors use the event‐study methodology with crude dependence adjustment to examine the wealth effect for the involved derivatives dealers. The authors re‐estimate the parameters using the market‐adjusted model to check for robustness. In addition, a multivariable regression framework was used to estimate the determinants of the abnormal returns.

OTC derivatives dealers experience negative returns when their clients announce derivatives losses. In contrast, rival dealers uninvolved in the loss event exhibit positive returns. The extent of the positive returns for the rival dealers grows as new events unfold, and the dealers continue to steer clear of derivatives trouble. A broader industry portfolio of securities brokers, dealers, and advisors is affected negatively, indicating possible industry contagion. The cross‐sectional analysis of the abnormal returns indicates the presence of information (and not pure) contagion implying that in a financial crisis involving derivatives systemic failure is not likely.

The authors extend the literature by examining an exhaustive set of derivatives loss events. The sample includes a more diverse set of derivatives dealers and it spans a longer time period than prior studies did. This is also the first study confirming the distorting impact of the “too big to fail” and “federal safety net” phenomena in the context of OTC derivatives dealing.

The purpose of this paper is to examine the probable structure of bilateral derivatives contracts following international regulatory reforms.

The theoretical context of the paper is private and meta‐regulation, which the author applies to a case study and current industry analysis.

While regulations are still being written, it is likely that elements of oversight for the bilateral derivatives market will involve enforced self‐regulation. When combined with more specific outcome‐oriented regulatory requirements, the industry is well‐suited to this type of coordinated regulatory regime.

In light of the uncertainty of derivatives regulation and the future size of the bilateral, over‐the‐counter (OTC) derivatives market, practitioners should consider a likely broader range of regulation structures.

The paper fills a gap in the literature about non‐traditional governance structures for the derivatives markets following the financial crisis. Rather than considering regulation on a light/heavy axis, the paper examines whether this segment of the market can sustain a process‐oriented regulatory arrangement.

Taiwan OTC market is an electronic, order driven, call market. The purpose of this paper is to gain understanding of whether trade size or number of transaction provides more information on explaining price volatility and market liquidity in this market. The paper also aims to investigate how market condition can affect the relationship between information type and trading activities.

The paper uses data from the Taiwan OTC market to run the empirical tests. It divides firms into five size groups based on their market capitalization. Regression equations are run to test: whether number of transactions has a more significant impact on price volatility on the Taiwan OTC market; the impact of market information on number of transactions; the relative impact of firm specific and market information on number of transactions; and the impact of number of transaction of bid‐ask spread.

Findings show that the larger the number of transactions, the higher the price volatility. Smaller firms on the Taiwan OTC market are traded based on firm‐specific information. This relation is further affected by market trends. Especially for the larger firms, when the market is up and the amount of market information increases, number of transactions increases. When the market is down and the amount of market information increases, number of transactions decreases. Finally, it is found spread size is more likely to be influenced by number of transactions, instead of trade size. Overall, based on these empirical results, the information content of number of transactions seems to be higher than that of trade size in the Taiwan OTC market.

Investors now understand that number of transaction actually carry more information than trade size does.

The relation between market information and number of transaction, also that between market information and trade size is influenced by market condition. The paper fills a gap in the literature to show that market condition has an impact on the relation between information type and trader's behavior. A number of transactions are identified that provide more information than trade size does. It is also shown that market conditions can further affect the impact of information on trading activities.