Outer bag or relation is nothing but a bag of tuples. Here relations are similar as relations in relational databases. For example:
{(Linkin Park, California), (Metallica, Los Angeles), (Mega Death, Los Angeles)}
An inner bag contains a bag inside a tuple. For Example:
(Los Angeles, {(Metallica, Los Angeles), (Mega Death, Los Angeles)})
(California, {(Linkin Park, California)})