Witzel Michael. On the origin of the literary device of the 'Frame Story' in Old Indian literature

Hinduismus und Buddhismus: Festschrift für U. Schneider. — Ed. by Harry Falk. — Freiburg: Hedwig Falk, 1987. — P. 380-414.The literary device, usually called the frame story (or story within а story) is а prominent feature of ancient Indian literature, whether it concerns narrative literature or not: One just has to think of the complicated frame work found in the Mahabharata, in many Puranas, and in classical literature.
This type of story gives the impression of appearing suddenly and in а fully developed form with the Mahabharata. But one саn already detect predecessors of this literary device in the Middle Vedic literature, i. е. in the Yajurveda-Samhitas and the various Brahmanas of the Four Vedas.