Stories are the fire we carry to each other.
– Bobette Buster, Do Story
Here is a psychological (not literary) definition of fiction:
…But fiction is not empirical truth. It is simulation that runs on minds of readers just as computer simulations run on computers. In any simulation coherence truths have priority over correspondences. Moreover, in the simulations of fiction, personal truths can be explored that allow readers to experience emotions — their own emotions — and understand aspects of them that are obscure, in relation to contexts in which the emotions arise. [color added]