The Inductive Reasoning Model (IRM) provides an integrated platform for the study of several phenomena central to self- and social perception. The model goes beyond the traditional phenomenon-focused research strategy by showing how to generate point-specific hypotheses about the size of individual effects and how to predict the interrelations among phenomena of interest. The model reveals constraints to theory by showing what types of hypotheses are impossible. The IRM uses empirically based inputs, such as the positivity of a person’s self- image or the strength of social projection, to predict outputs representing higher-order phenomena of interest, namely, intergroup accentuation, self-enhancement, ingroup favoritism, and differential accuracy. In the present paper, we derive the central relationships among these phenomena in IRM analytically with empirical evidence.