In our preliminary theory of intensity resolution [e.g., see N. I. Durlach and L. D. Braida, J. Acoust. Soc. Am. 46, 372-383 (1969)], two modes of memory operation are postulated: the trace mode and the context-coding mode. In this paper, we present a revised model of the context-coding mode which describes explicitly a process by which sensations are coded relative to the context and which predicts a resolution edge effect [L. D. Braida and N. I. Durlach, J. Acoust. Soc. Am. 51, 483-502 (1972); J. E. Berliner, L. D. Braida, and N. I. Durlach, J. Acoust. Soc. Am. 61, 1256-1267 (1977)]. The sensation arising from a given stimulus presentation is coded by determining its distance from internal references or perceptual anchors. The noise in this process, combined with the sensation noise, constitutes the limitation on resolution in the model. In the revised model the probability density functions of the decision variable are not precisely Gaussian (and cannot be expressed analytically in closed form). This paper outlines the predictions of the model for one-interval paradigms and for fixed-level two-interval paradigms and derives estimates of the values of model parameters.
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