To quote a higher price when you're selling something than the price for which you're really willing to part with it, maybe considerably higher.
Then when you go down lower the buyer thinks they're beating you, especially if they haven't done their homework. This way both people win. You get your price and the buyer wins too. Clearly a win-win situation
Highballing can also come in handy if you want to buy an expensive television but your wife wants to spend less than you do. Let's say you want to buy a $600.00 TV. Then you can tell your wife you want the $800.00 one and when you "give in" and choose the cheaper one, she's happy that you're so reasonable. This is vile and manipulative and not recommended if you want to promote a trusting relationship.