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This is a special kind of crossover trope, where the characters from Show A will enter the universe of Show B--both shows of which are "real" to us. In other words, neither is a Show Within a Show. In addition to finding out that they're trapped in the universe of Show B, the characters of Show A discover that they themselves are the subject of a Show A in the universe of Show B. The characters from Show A are, in essence, simultaneously Trapped in TV Land and a Refugee From TV Land. This isn't Welcome to The Real World, since both universes are depicted as being equally "real".
A situation in which Show A is fictional in Show B and Show B is fictional in Show A isn't an example of this trope if they never share a continuity; if in A's continuity B is just fiction and vice versa. This could happen with two completely unrelated works that each incorporate real world elements that happen to include the other work.
Strictly speaking, this kind of crossover should never logically be allowed to exist. At the very least, the particular episode of each series or work which references the other should be assumed to not exist within the other's universe. Otherwise, you would have a situation wherein it would be distinctly possible for the main characters to see the TV show of their entire reality within said reality, realize their entire existence was a lie, and freak out. And we wouldn't want that, now would we?
One possible justification would be if the two worlds are simply Alternate Universes and the "shows" in question are based on visions people have from the other world. In this case, expect the characters trying to establish what in this shows is correct and what is not. Unfortunately, the Fiction Identity Postulate proves that all fiction is equally unreal. And anyone living in an Alternate Universe may be, by definition, fictional.
See also Celebrity Paradox. Comic Books Are Real is a one-sided version, usually dealing with a Show Within a Show instead of another real-life series. Compare Faeries Don't Believe in Humans, Either, where each side believes the other is only stories prior to meeting, but both have always been fact and that's what the stories are based on. Contrast Stable Time Loop, which leads to a similar Ontological Paradox.
- Once upon a time, Milestone Comics and DC Comics' Superman books participated in a Crisis Crossover, Worlds Collide. The Blood Syndicate (essentially a streetgang with powers) were the first Milestone characters to meet Superman, and although they thought he was just a local wannabe, they all immediately knew who Superman was, what he could do, etc. because Superman was a comic book character in the Milestone 'verse. ("Does your mama know you left the house looking like Clark Kent?!"). Superman doesn't have the same benefits, realistically, since the Milestone Comics characters were hardly a household name, and he's not much of a comic fanboy.
- Static, an Ascended Fanboy, lampshades this; he drops his knowledge of Post-Crisis Superboy's history, and explains "I read all your comic books! Don't you read all of my comic books? (Do I have comic books?)"
- In the wake of a Cosmic Retcon, the two universes have now been merged with a new, shared history. Only a handful of people (including Superman) remember that they were ever separate.
- This happens to Superman a lot; it used to be that DC/Marvel crossovers operated under the conceit that the characters, if they didn't know of each other, at least operated in the same reality for the duration of the Crossover (Spider-man/Batman, for example), but after DC vs. Marvel/Marvel vs. DC, they were explicitly separate realities. It is true that the Fantastic Four knew of Superman from the events of that crossover in Superman/Fantastic Four, it was also established that Ben Grimm and Franklin Richards knew of Superman from the exploits of his comic book counterpart.
- Incidentally, Marvel vs. DC played with a retcon of Spider-man/Batman when the Joker recognized Spider-man from somewhere. Of course, since S/B was set before the Spider-clone saga and DC vs. Marvel was set after, Ben Reilly Spider-man didn't recognize the Joker from Peter Parker's adventure.
- Speaking of DC Comics, Pre Crisis at least, Earth-One and Earth-Two were fictional to each other, and on Earth-Prime, supposedly all the other alternate universes were fictional.
- In the Harry Potter and Fate/stay night crossover Fanfic "Fictional", Harry is a servant created by Caster from the book series. A big part of the plot is Harry coming to terms that all of his hardships were fictional and how to deal with it after the obligatory freak out. And you know, deal with being a slave (*cough* Servant). Did I mention that he also has to hide his scar, because other people freak out when they meet Harry Potter too?