This article proposes a model of the reader's understanding of the poi
nts of simple narrative texts, such as fables, and tests this model by
using point generation and fable comprehension data from adult subjec
ts. The model identifies three components necessary for understanding
the fable's moral or point: (a) the positive or negative valence of th
e central action in the fable, (b) the positive or negative valence of
the fable's outcome, and (c) the consistency in valence between actio
n and outcome information. The model was tested by having subjects rea
d traditional Aesop's fables and three types of experimental fables wr
itten to be inconsistent with the proposed fable schema. The data show
ed strong support for the theory. Readers had considerable difficulty
deriving points for texts that were inconsistent with the proposed sch
ema, and, in those cases in which the data were not in agreement with
the predictions, it was possible to use components of the model to pro
vide an account of the basic findings.