Computer aided interactive narrative allows people to participate actively in a dynamically unfolding story, by playing a character\nor by exerting directorial control. Because of its potential for providing interesting stories as well as allowing user interaction,\ninteractive narrative has been recognized as a promising tool for providing both education and entertainment. This paper discusses\nthe challenges in creating interactive narratives for pedagogical applications and how the challenges can be addressed by using\nagent-based technologies. We argue that a rich model of characters and in particular aTheory of Mind capacity are needed. The\ncharacter architect in theThespian framework for interactive narrative is presented as an example of how decision-theoretic agents\ncan be used for encodingTheory of Mind and for creating pedagogical interactive narratives.
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