Raymond Mar, a psychologist at York University in Canada, explains that we understand stories using basic cognitive functions, and there is not a special module in the brain that allows us to do this. Understanding stories is similar to the way we understand the real world.
"When people read stories we invoke personal experiences. We're relying not just on words on a page, but also our own past experiences," Mar said.
"We often have thoughts and emotions that are consistent with what's going on in a story," he said.
"We may gain insight into things that have happened in the past that relates to a character in a story, and resonates with our experiences," Mar said.
"Even though fiction is fabricated, it can communicate truths about human psychology and relationships," he said.
According to one study, over 75 per cent of books typically read to preschoolers frequently reference mental states, and include very complex things such as false-belief or situational irony.
In 2010, Mar and colleagues published a study which found that parents that were able to recognise children's authors and book titles predicted their child's performance on theory-of-mind tests.
The research was presented at the American Psychological Association's Annual Convention in US.
