Comparing the effects of ON–OFF splitting and decorrelation. A, B, Two neurons encode almost identical stimulus variables. As shown in the previous figures, ON–OFF coding enhances the transmitted information by ∼25%. C, Here the two stimulus variables are first decorrelated by lateral inhibition to statistical independence and then encoded by two neurons. Under best conditions, this transmits 2 bits, a 26% increase over the log3(2) bits in B.