The Pleasures of Imagination
It is an open question how early this understanding emerges, and there is some intriguing experimental work exploring this. My own hunch is that even babies have some limited grasp of pretense, and you can see this from casual interaction. A useful way to spend time with a 1-year-old is to put your face up close and wait for the baby to grab at your glasses or nose or hair. Once there is contact, pull your head back and roar in mock rage. The first time you get a bit of surprise, maybe concern, a dash of fear, but then you put your head back and wait for the baby to try again. She will, and then you give the pretend-startled response. Many babies come to find this hilarious. (If the baby is an eye-poker, you can wrestle over keys instead.) For this to work, though, the baby has to know that you are not even a little bit angry; the baby must know that you are pretending.
Why do we get pleasure from the imagination? Isn’t it odd that toddlers enjoy pretense, and that children and adults are moved by stories, that we have feelings about characters and events that we know do not exist? As the title of a classic philosophy article put it, how can we be moved by the fate of Anna Karenina?