The idea is to take this pattern (he knows she knows etc. but she doesn't know he knows she knows etc.) and write stories around each iteration. The easiest example I can think of is cheating. Anyhow, this can all be written as one story. Ideally, each iteration should be long enough to be postable as a separate story.
Example:
Iteration 1. He is cheating on her. She doesn't know about it. Not much to say, so no need to write a story. Plenty of stories of this type already. Still, you'd probably want to throw in a paragraph for it (or be nice and write a full story).
Iteration 2. He is cheating on her. She knows about it. He doesn't know she knows about it. Not much to say, so no need to write a story. Plenty of stories of this type already. Still, you'd probably want to throw in 2-3 paragraphs for it (or be nice and write a full story).
Iteration 3. He is cheating on her. She knows he is cheating on her. He knows she knows he is cheating on her. She does not know he knows she knows he is cheating on her.
Possible story: He might cheat on his wife and be getting off on her watching him. But she'd have no idea he knew she was watching her.
Iteration 4. ...She knows he knows she knows he is cheating but he deson't know she knows he knows she knows he is cheating.
Possible story: She cheats, he watches, wife whispers in guy's ear, "My husband is watching us right now."
Iteration 5. ...He knows she knows...
Possible story: She cheats he watches, wife whispers in guy's ear, "My husband is watching us right now." Girl whispers in husband's ear, "Wow, this is sexy. I wonder what your wife would think about you getting off on this." Husband, "She knows I'm watching her." Girl, "You talked about it with her?" Husband, "No. I doubt she even realizes I know she figured out I'm watching. I'm sure she'll get off on us watching once she figures it out."
Iteration 6. ...She knows...
Husband was right. Wife is thinking, "Wow, he knows I know. And he's brought someone new. :::Wife uses hidden camera:::
Iteration 7. ...
Husband finds video from hidden camera, has sex with the girl with it playing.
Iteration 8. ...
Wife tapes husband having sex to video.
The challenge is to see how many iterations you can get before the story stops making sense. Though if it gets a bit confusing at the higher iterations, that's understandable. Start each iteration with the preface, "He knows she knows he knows she is cheating but she doesn't know he knows she knows he knows she is cheating." Do not shorten it. The preface should be somewhat incomprehensible. The iteration, combined with the previous iteration, should allow the reader to somewhat wrap their head around the concept. A reader who reads the story in one sitting might get a headache, though. In theory, there is no limit to the number of iterations but eventually it becomes absurd. I suppose in real life it would probably eventually reach the point where both people say to themselves, "Ya know, I bet s/he knows I know." Either that or the two partners would just confront one another. A good last chapter would be such a confrontation.
Husband: I know
Wife: I know
Husband: I know
Wife: I know
...
Wife: Wow, I didn't know!
Example:
Iteration 1. He is cheating on her. She doesn't know about it. Not much to say, so no need to write a story. Plenty of stories of this type already. Still, you'd probably want to throw in a paragraph for it (or be nice and write a full story).
Iteration 2. He is cheating on her. She knows about it. He doesn't know she knows about it. Not much to say, so no need to write a story. Plenty of stories of this type already. Still, you'd probably want to throw in 2-3 paragraphs for it (or be nice and write a full story).
Iteration 3. He is cheating on her. She knows he is cheating on her. He knows she knows he is cheating on her. She does not know he knows she knows he is cheating on her.
Possible story: He might cheat on his wife and be getting off on her watching him. But she'd have no idea he knew she was watching her.
Iteration 4. ...She knows he knows she knows he is cheating but he deson't know she knows he knows she knows he is cheating.
Possible story: She cheats, he watches, wife whispers in guy's ear, "My husband is watching us right now."
Iteration 5. ...He knows she knows...
Possible story: She cheats he watches, wife whispers in guy's ear, "My husband is watching us right now." Girl whispers in husband's ear, "Wow, this is sexy. I wonder what your wife would think about you getting off on this." Husband, "She knows I'm watching her." Girl, "You talked about it with her?" Husband, "No. I doubt she even realizes I know she figured out I'm watching. I'm sure she'll get off on us watching once she figures it out."
Iteration 6. ...She knows...
Husband was right. Wife is thinking, "Wow, he knows I know. And he's brought someone new. :::Wife uses hidden camera:::
Iteration 7. ...
Husband finds video from hidden camera, has sex with the girl with it playing.
Iteration 8. ...
Wife tapes husband having sex to video.
The challenge is to see how many iterations you can get before the story stops making sense. Though if it gets a bit confusing at the higher iterations, that's understandable. Start each iteration with the preface, "He knows she knows he knows she is cheating but she doesn't know he knows she knows he knows she is cheating." Do not shorten it. The preface should be somewhat incomprehensible. The iteration, combined with the previous iteration, should allow the reader to somewhat wrap their head around the concept. A reader who reads the story in one sitting might get a headache, though. In theory, there is no limit to the number of iterations but eventually it becomes absurd. I suppose in real life it would probably eventually reach the point where both people say to themselves, "Ya know, I bet s/he knows I know." Either that or the two partners would just confront one another. A good last chapter would be such a confrontation.
Husband: I know
Wife: I know
Husband: I know
Wife: I know
...
Wife: Wow, I didn't know!