Lateral inhibition in V1 controls neural and perceptual contrast sensitivity

Lateral inhibition is a central principle in sensory system function. It is thought to operate by the activation of inhibitory neurons that restrict the spatial spread of sensory excitation. However, the neurons, computations and mechanisms underlying cortical lateral inhibition remain debated, and its importance for perception remains unknown. Here we show that lateral inhibition from parvalbumin neurons in mouse primary visual cortex reduced neural and perceptual sensitivity to visual contrast in a uniform subtractive manner, whereas lateral inhibition from somatostatin neurons more effectively changed the slope (or gain) of neural and perceptual contrast sensitivity. A neural circuit model, anatomical tracing and direct subthreshold measurements indicated that the larger spatial footprint for somatostatin versus parvalbumin synaptic inhibition explains this difference. Together, these results define cell-type-specific computational roles for lateral inhibition in primary visual cortex, and establish their unique consequences on sensitivity to contrast, a fundamental aspect of the visual world.