Abstract
We constantly exploit the statistical regularities in our environment to help guide our perception. The hippocampus has been suggested to play a pivotal role in both learning environmental statistics, as well as exploiting them to generate perceptual predictions. However, it is unclear how the hippocampus balances encoding new predictive associations with the retrieval of existing ones. Here, we present the results of two high resolution human fMRI studies (N = 24 for both experiments) directly investigating this. Participants were exposed to auditory cues that predicted the identity of an upcoming visual shape (with 75% validity). Using multivoxel decoding analysis, we find that the hippocampus initially preferentially represents unexpected shapes (i.e., those that violate the cue regularities), but later switches to representing the cue-predicted shape regardless of which was actually presented. These findings demonstrate that the hippocampus is involved both acquiring and exploiting predictive associations, and is dominated by either errors or predictions depending on whether learning is ongoing or complete.