It is argued in this article that information-processing models enable
us to link psychotic phenomena to their neural bases. The core abnorm
ality is viewed as a disturbance in the integration of sensory input w
ith stored material. The performance of schizophrenic subjects on task
s derived from both animal learning theory and human experimental psyc
hology is consistent with the model. The way in which such a disturban
ce relates to schizophrenic symptoms is outlined. It may result from a
n abnormality at one or more points in the neural circuit responsible
for generating predictions of subsequent sensory input; in particular
the hippocampus and related brain structures are implicated. The poten
tial relevance of the model for psychological intervention is discusse
d.