The argument from analogy is examined from the point of view of Carnap's confirmation theory. It is argued that if inductive arguments are to be applicable to the real world, they must contain elementary analogical inferences. Carnap's system as originally developed (theλ -system) is not strong enough to take account of analogical arguments, but it is shown that the new system, which he has announced but not published in detail (theη -system), is capable of satisfying the conditions of inductive analogy. (...) Finally it is shown that an elementary analysis of analogical inference yields postulates of the η -system with a minimum of arbitrary assumptions. (shrink)