In this paper, we present a theory of discourse management, based on a
version of Mental Space Theory, modified to accommodate dialogic disc
ourse by incorporating a memory management system. We posit a cognitiv
e interface between linguistic expressions and the memory-base. This i
nterface works as a mental discourse domain in which elements are set
up and relations defined in the course of a discourse. We propose to d
ivide this mental discourse domain into two components, I-domain (inte
nsional, indirect domain) and D-domain (deictic, direct domain). The I
-domain is linked to the temporary memory and houses assumptions which
are newly introduced to the discourse by linguistic description. The
D-domain is linked to the permanent memory (and direct experience) and
houses assumptions that are directly accessible. To demonstrate the c
orrectness of our approach, we examine phenomena in Japanese involving
reference fixing: proper nouns, third person pronouns and demonstrati
ves, and assumption management particles: sentence final particles yo
and ne. We show that our dual domain approach solves problems of mutua
l knowledge paradox involved in these phenomena by eliminating the nee
d to make any reference to the hearer's knowledge assumed by the speak
er in the description, thereby providing a powerful descriptive tool f
or some of the most recalcitrant problems in linguistic phenomena.