Many sensory and motor variables are encoded in the nervous system by the a
ctivities of large populations of neurons with bell-shaped tuning curves. E
xtracting information from these population codes is difficult because of t
he noise inherent in neuronal responses. In most cases of interest, maximum
likelihood (ML) is the best read-out method and would be used by an ideal
observer. Using simulations and analysis, we show that a close approximatio
n to ML can be implemented in a biologically plausible model of cortical ci
rcuitry. Our results apply to a wide range of nonlinear activation function
s, suggesting that cortical areas may, in general, function as ideal observ
ers of activity in preceding areas.