Truth in the Tales of the Odyssey

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It makes sense to talk of truth in fiction, but the ontological status of a lie in fiction is not as clear-cut as its counterpart in real life. When we are dealing with a fiction such as the Odyssey that includes characters' stories with variable truth-values, we need to confront this issue of truth and falsehood in fiction and determine what it means to say that a story within a story is a lie.