Direction selectivity of motion-sensitive neurons is generally thought to result from the nonlinear interaction between the signals derived from adjacent image points. Modeling of motion-sensitive networks, however, reveals that such elements may still respond to motion in a rather poor directionally selective way. Direction selectivity can be significantly enhanced if the nonlinear interaction is followed by another processing stage in which the signals of elements with opposite preferred directions are subtracted from each other. Our electrophysiological experiments in the fly visual system suggest that here direction selectivity is acquired in such a two-stage process.Neurons with directionally selective responses to motion are found at different levels of the nervous system in animals as phylogenetically distant as insects and primates. It is an essential requirement for any mechanism underlying direction selectivity that it has at least two input channels subserving neighboring points in visual space, which, after being processed in an asymmetric way, interact nonlinearly (1-3) (Fig. 1 A). Various formal operations have been proposed for this nonlinear interaction, such as a logical gate (4), a multiplication (5-7), and a summation followed by a squaring (8) or a threshold operation (9, 10). However, such a singlestage mechanism may also respond to nonmotion stimuli as, for instance, changes in the mean light intensity (11,12). Because these direction-independent response components are identical in two single-stage mechanisms with the same receptive field but opposite polarity, they can be eliminated by subtracting the output of two such units (Fig. 1B). If such a two-stage process is perfectly mirror-symmetrical, it responds with the same amplitude but an opposite sign to motion in opposite directions (5,6,12). However, even if the symmetry is not exact, direction selectivity is enhanced by a subtraction stage as compared with the corresponding singlestage model (12).The first model of motion detection worked out in formal terms (5), the so-called correlation-type movement detector, makes use of this simple computational principle. This mechanism was initially proposed on the basis of experimental studies on insects (3, 5, 6), where it can account for motion detection surprisingly well under both steady-state and transient stimulus conditions (2, 6, 13-16). Although much effort has been made to characterize the nonlinear interaction, which could be shown to be well approximated by a multiplication (12, 17), there is so far not much direct evidence for the second processing step of direction selectivity, the subtraction stage.In contrast to insects, the responses of directionally selective cells in vertebrates are usually interpreted without taking the possibility of this second processing stage into account (see, however, ref. 18). Instead, most studies are based on a particular single-stage mechanism that goes back to the seminal study of Barlow and Levick (4) on directionally selective retinal g...