This is a very interesting phenomenon. I think one application of it may be in no-limit poker. You have two categories of hands: rags and monsters. If you just

This is a very interesting phenomenon. I think one application of it may be in no-limit poker. You have two categories of hands: rags and monsters. If you just wait for monsters and don't play rags, you won't likely get paid off against strong opponents. Instead, many successful players use a strategy where they play a lot of hands, hoping to hit with rags one hand (negative EV) and catching a monster shortly after to get paid off huge because their opponents don't give them sufficient credit for a strong hand (due to their recent loose play with rags).