A more thorough explanation:

Definition: By-bidding is an illegal practice where a person is hired to bid at an auction to increase the bidding on the seller's property. This is also known as puffing. By-bidding is different from bidding up, where a genuine bidder raises the price of an item.

Example 1: John wants to sell his antique vase at an auction. He hires his friend, Tom, to bid on the vase to make it seem like there is more interest in the item. Tom has no intention of buying the vase and is only bidding to increase the price. This is an example of by-bidding.

Example 2: Sarah is selling her car at an auction. A man named Mike starts bidding on the car and raises the price. However, Sarah later finds out that Mike was hired by her neighbor to increase the price of the car. This is an example of by-bidding.

These examples illustrate how by-bidding works. In both cases, someone is hired to bid on an item to increase the price. This is illegal because it deceives genuine bidders and can lead to the seller receiving a higher price than the item is worth.