It takes a more sophisticated Theory of Mind to imagine that another individual holds a false belief. It means conceiving of a state of affairs that you know to be untrue, while at the same time retaining knowledge of the situation you know is true.*
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*We sometimes struggle to do this ourselves, being more ready to attribute a false belief to a cognitive deficit - they must be really stupid!' - than to allow that there's a coherent way to see the world in which that belief could be true. Admittedly, the credulity that some people exhibit towards conspiracy theories tests that ability to extremes.
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Umberto Tilomelli