A potential poker analogy is probably just getting lost in leveling games.
Level 0: My opponent made a large bet because he has a strong hand. I should fold.
Level 1: My opponent made a large bet because he knows that I will think it looks like he has a strong hand, when in fact he has a weak hand. I should call.
Level 2: My opponent knows that I think his large bets are bluffs, so he is now making a large bet assuming that I will wrongly assume he is bluffing. I should fold.
Level N: (if N is odd, I should call; if N is even, I should fold)
Beginner players will only think at level 0 or 1, but intermediate/advanced players may sometimes end up "leveling" themselves into a bad decision.
Level 0: My opponent made a large bet because he has a strong hand. I should fold.
Level 1: My opponent made a large bet because he knows that I will think it looks like he has a strong hand, when in fact he has a weak hand. I should call.
Level 2: My opponent knows that I think his large bets are bluffs, so he is now making a large bet assuming that I will wrongly assume he is bluffing. I should fold.
Level N: (if N is odd, I should call; if N is even, I should fold)
Beginner players will only think at level 0 or 1, but intermediate/advanced players may sometimes end up "leveling" themselves into a bad decision.