In this Wireless Philosophy video, Liang Zhou Koh talks about two theories of mindreading - Theory Theory and Simulation Theory. Check out the video on our website: www.wi-phi.com/videos/how-min...
One issue with pure simulation theory is that it doesn't seem to explain how we can understand and predict things about our friends, family, or even fictional characters when their personalities and choices would be very different from our own, even under the same circumstances. It seems much more likely to me that simulation is a tool that is very useful in developing and understanding theory of mind, but cannot be the whole picture.
A more apt title for the video/concept should be "How Mind Assuming Works" or "Two possibly complimentary theories on how we guess other people's thoughts." I call the last one the Theory&Simulation Theory