Because causal relations are neither observable nor deducible, they mu
st be induced from observable events. The 2 dominant approaches to the
psychology of causal induction-the covariation approach and the causa
l power approach-are each crippled by fundamental problems. This artic
le proposes an integration of these approaches that overcomes these pr
oblems. The proposal is that reasoners innately treat the relation bet
ween covariation (a function defined in terms of observable events) an
d causal power(an unobservable entity) as that between scientists' law
or model and their theory explaining the model. This solution is form
alized in the power PC theory, a causal power theory of the probabilis
tic contrast model(P. W. Cheng & L. R. Novick, 1990). The article revi
ews diverse old and new empirical tests discriminating this theory fro
m previous models, none of which is justified by a theory. The results
uniquely support the power PC theory.