The ability to adapt to the environment is critical for the survival and evolution of biological organisms. The mammalian visual system has been shown to be highly adaptable (Blakemore & Campbell,
1969a,
1969b; Carandini & Ferster,
1997; Foley & Boynton,
1993; Georgeson & Harris,
1984; Greenlee, Georgeson, Magnussen, & Harris,
1991; Jones & Tulunay-Keesey,
1980; Mather, Verstraten, & Anstis,
1998; Ohzawa, Sclar, & Freeman,
1985; Sanches-Vives, Nowak, & McCormick,
2000b; Shapley & Enroth-Cugell,
1984; Sharpe & Tolhurst,
1973; Tolhurst & Barfield,
1978; Williams, Wilson, & Cowan,
1982). In early stages of processing, the visual system relies on retinal light adaptation to cope with the enormous range of light levels in the environment with a relatively narrow neural dynamic range (Shapley & Enroth-Cugell,
1984). After light adaptation, the absolute level of luminance is relatively unimportant in visual processing. Instead, stimulus contrast or pattern is extracted and becomes more relevant. Whereas much research has demonstrated remarkable contrast/pattern adaptation effects in the visual system, the functional significance of contrast/pattern adaptation is still not entirely clear. Although some have suggested that visual adaptation may improve information transmission in the visual system (Barlow,
1990; Wainwright,
1999), the experimental results have been mixed. Greenlee and Heitger (
1988) and Wilson and Humanski (
1993) found that prolonged inspection of a high-contrast sine-wave grating reduced the increment thresholds when observers performed contrast discrimination on similar sine-wave gratings with relatively high baseline contrasts. The results have however not been replicated (Foley & Chen,
1997; Ross, Speed, & Morgan,
1993). Previously, Barlow, MacLeod, and van Meeteren (
1976) also found no compensatory advantages following adaptation to gratings. In this study, we investigated how grating adaptation alters various components of visual processing using an external noise paradigm in combination with the observer model approach (Ahumada & Watson,
1985; Barlow,
1956; Burgess, Wagner, Jennings, & Barlow,
1981; Lu & Dosher,
1999; Nagaraja,
1964; Pelli,
1981). We discuss the functional implications of these changes following grating adaptation.