According to Frazer, magical thinking depends on two laws: the law of similarity[?] (an effect resembles its cause), and the law of contagion[?] (things which were once in physical contact maintain a connection even after physical contact has been broken). Others have described these two laws as exampled of "analogical reasoning" (rather than logical reasoning).
Typically, people use magic to explain and control things that science cannot. The classic example is of the collapsing roof, described in E.E. Evans-Pritchard[?]'s Witchcraft, Magic, and Oracles Among the Azande, in which the Azande claimed that a roof fell on a particular person because of a magical spell cast by another person. The Azande did understand a scientific explanation for the collapsing room (that termites had eaten throough the supporting posts), but pointed out that this scientific explanation could not explain why the roof happened to collapse at precisely the same moment that the particular man was resting beneath it. Thus, from the point of view of the practitioners, magic explains what scientists would call "coincidences[?]" or "contingency[?]". From the point of view of outside observers, magic is a way of making coincidences meaningful in social terms.
In the West, magic is generally used to denigrate or trivialize a belief and practice. Conversely, adherents of these belief systems often do not recognize their beliefs as being magical at all. In the East, many coincidences and contingencies are explained in terms of karma in which a persons actions in a past life affects current events.
A common form of magical thinking is that one's own thoughts can influence events, either beneficially, by creating good luck, or for the worse, as in divine punishment[?] for "bad thoughts" (a phenomena Freud reflected on in his essay, "the Uncanny").
Another form of magical thinking occurs when people believe that words can directly affect the world. This can mean avoiding talking about certain subjects ("speak of the devil and he'll appear"), using euphemisms instead of certain words, or believing that to know the "true name" of something gives one power over it, or that certain chants, prayers or mystical phrases will change things.
Opponents of magical thinking state that it has an adverse effect on a person's faith in himself. Rather than acknowledging his or her own success upon accomplishing a particular task, skeptics claim, the person credits a "magical" source as the reason why he or she achieved this particular goal, thus increasing dependence on "magic" rather than on oneself. Critics also note that while people are quick to give credit to magical thinking for their successes, they seldom blame their failures upon it, instead increasing their own pessimism by taking credit for their own failures but not their own successes.
Noting the great similarity of magical thinking in all types of human societies and eras of recorded history, some cognitive scientists suggest that these ways of thinking are intrinsic to humanity. Many articles in neuroscience have shown that the human brain excels at pattern matching, but that humans do not have a good filter for distinguishing between perceived patterns and actual patterns. Thus, people often are led to see "relationships" between actions that don't actually exist, creating a magical belief.
There is much current scientific research in cognitive science that supports this view. For example, people tend to seek confirmation of their hypotheses, rather than seeking refutation as in the scientific method. This is known as confirmation bias. People are also reluctant to change their beliefs, even when presented with evidence, and often prefer to believe contradictory things rather than change pre-existing beliefs. This phenomenon is known as cognitive dissonance.
Phillips Stevens writes "Many of today's complementary or alternative systems of healing involve magical beliefs, manifesting ways of thinking based in principles of cosmology and causality that are timeless and absolutely universal. So similar are some of these principles among all human populations that some cognitive scientists have suggested that they are innate to the human species, and this suggestion is being strengthened by current scientific research... Some of the principles of magical beliefs described above are evident in currently popular belief systems. A clear example is homeopathy... The fundamental principle of its founder, Samuel Hahnemann (1755-1843), similia similibus curentur ("let likes cure likes"), is an explicit expression of a magical principle."