Final answer:
The excerpt from Levitt and Dubner's Freakonomics uses inductive reasoning by studying specific examples of bagel payments to draw generalizations about honesty and its influencing factors.
Step-by-step explanation:
The excerpt from Levitt and Dubner's Freakonomics is an example of inductive reasoning because the authors are formulating a generalization by studying specific examples. This method starts with detailed observations about bagel payments and dishonesty, and through analysis of these specific instances, the authors draw broader conclusions about human behavior and the factors affecting honesty such as weather and holidays. This process moves from particular details to broader insights, which is characteristic of inductive reasoning.