Inductive Reasoning and Bounded Rationality

How do humans reason in situations that are complicated or ill-defined? Modern psychology tells us that as humans we are only moderately good at deductive logic, and we make only moderate use of it. But we are superb at seeing or recognizing or matching patterns--behaviors that confer obvious evolutionary benefits. In problems of complication then, we look for patterns; and we simplify the problem by using these to construct temporary internal models or hypotheses or schemata to work with.