Simulation, theory, and the frame problem: the interpretive moment
The theory-theory claims that the explanation and prediction of behavior works via the application of a theory, while the simulation theory claims that explanation works by putting ourselves in others' places and noting what we would do. On either account, in order to develop a prediction or explanation of another person's behavior, one first needs to have a characterization of that person's current or recent actions. Simulation requires that I have some grasp of the other person's behavior to project myself upon; whereas theorizing requires a subject matter to theorize about. The frame problem shows that multiple, true characterizations are possible for any behavior or situation. However, only one or a few of these characterizations are relevant to explaining or predicting behavior. Since different characterizations of a behavior lead to different predictions or explanations, much of the work of interpersonal interpretation is done in the process of finding this characterization - that is, prior to either theorizing or simulating. Moreover, finding this characterization involves extensive knowledge of the physical, cultural, and social worlds of the persons involved.
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