I examine and resolve an exegetical dichotomy between two main interpretations of Peirce’s theory of abduction, namely, the Generative Interpretation and the Pursuitworthiness Interpretation. According to the former, abduction is the instinctive process of generating explanatory hypotheses through a mental faculty called insight. According to the latter, abduction is a rule-governed procedure for determining the relative pursuitworthiness of available hypotheses and adopting the worthiest one for further investigation—such as empirical tests—based on economic considerations. It is shown that the Generative Interpretation is inconsistent with a fundamental fact of logic for Peirce—i.e., abduction is a kind of inference—and the Pursuitworthin...