I still don't understand your point of view here. 

If you did not want to bid against your neighbor, why did you bid against your neighbor?  

Why is it okay for you to bid against him but not okay for someone else to bid against him? 

Assuming your neighbor was there, all he had to do was bid again if he wanted it.   Whether or not to buy an item at an auction is 100% up to the bidder.  If you want to buy it, nobody else can stop you.  If you are not willing to pay enough to buy it, you evidently didn't really want to buy it.    I seem to run into that problem alot, but it's not the fault of the other bidders at teh auction.