In a market division scheme, competitors divide markets and refrain from competing in each other's designated portion.

• A. Bid rotation
• B. Market division
• C. Ghost employee scheme
• D. DRG creep

Answer: (B)

The main idea being tested is market allocation, a form of collusion where competitors split markets or customers and agree not to compete in each other’s designated areas. This fits the description exactly: rivals carve up portions of the market and stay out of each other’s territories, which stifles competition and can drive up prices.

That’s why this option is the best fit. By dividing markets and refraining from competing in those portions, parties create a sealed, non-competitive arrangement in specific areas.

Other terms describe different fraud schemes. Bid rotation involves taking turns winning bids rather than dividing markets geographically. Ghost employee schemes rely on payroll fraud through phantom workers. DRG creep refers to misclassifying patient cases to obtain higher reimbursements in healthcare.