Some recent work has investigated the dichotomy between compact coding
using dimensionality reduction and sparse-distributed coding in the c
oncert of understanding biological information processing. We introduc
e an artificial neural network which self-organizes on the basis of si
mple Hebbian learning and negative feedback of activation and show tha
t it is capable both of forming compact codings of data distributions
and of identifying filters most sensitive to sparse-distributed codes.
The network is extremely simple and its biological relevance is inves
tigated via its response to a set of images which are typical of every
day life. However, an analysis of the network's identification of the
filter for sparse coding reveals that this coding may not be globally
optimal and that there exists an innate limiting factor which cannot b
e transcended.