A model of the hippocampus is presented which forms rapid self -organized representations of input arriving via the perforant path, performs recall of previous associations in region CA3, and performs comparison of this recall with afferent input in region CA 1. This comparison drives feedback regulation of cholinergic modulation to set appropriate dynamics for learning of new representations in region CA3 and CA 1. The network responds to novel patterns with increased cholinergic modulation, allowing storage of new self-organized representations, but responds to familiar patterns with a decrease in acetylcholine, allowing recall based on previous representations. This requires selectivity of the cholinergic suppression of synaptic transmission in stratum radiatum of regions CA3 and CAl, which has been demonstrated experimentally. 1 INTRODUCTION A number of models of hippocampal function have been developed (Burgess et aI., 1994; Myers and Gluck, 1994; Touretzky et al., 1994), but remarkably few simulations have addressed hippocampal function within the constraints provided by physiological and anatomical data. Theories of the function of specific subregions of the hippocampal formation often do not address physiological mechanisms for changing dynamics between learning of novel stimuli and recall of familiar stimuli.

Four overlapping patterns (1-4) are presented sequentially.