Certain periodic dot patterns (Marroquin patterns) generate a percept of dy
namically oscillating circles, and analogous effects were explored by op ar
tists in the 1960s. Here we show psychophysically that circles are perceive
d in these patterns only around specific points that are quantitatively pre
dicted by a neural model of configural units hypothesized to reside in cort
ical area V4. Circles superimposed on the pattern mask perception of illuso
ry circles. A neural model of lateral inhibitory interactions among V4 conf
igural units showing spike-frequency adaptation quantitatively accounts for
the human data. The model is consistent with ideas on the neural basis of
attention in V4, and it suggests that attention may be biased via neuromodu
lation of slow hyperpolarizing potentials in cortical neurons.