Games with Graham

Graham was getting up really early for awhile. One morning at 5:45am, when I would normally hide under the covers until he lies down and goes back to sleep, he stood up in his bed and made noises trying to get my attention. When he caught me peeking at him, he threw Wormy out of his bed.

I know that he can't possibly go back to sleep without that worm.

The question is, does he know that I know? If so, does he know that I know that he knows?

He's either a game theory prodigy (in which case, I say `Well played, my little genius'), or he has an infinite discount rate when it comes to anticipating the terrible regret and loss he will experience 5 seconds after tossing out his best friend.