We use Hoffmann's suggestion [Hoffmann, G. W. (1986) J. Theor. Biol. 122, 33-67] ofhysteresis in a single neuron level and determine its consequences in a synchronous network made of such neurons. We show that the overall retrieval ability in the presence of noise and the memory capacity of the network in the present model are better than in conventional models without such hysteresis. Second-order interaction further improves the retrieval ability of the network and causes hysteresis in the retrieval-noise curve for any arbitrary width of the bistable region. The convergence rate is increased by the hysteresis at high noise levels but is reduced by the hysteresis at low noise levels. Explicit formulae are given for calculations of average final convergence and noise threshold as functions of the width of the bistable region. There is neurophysiological evidence for hysteresis in single neurons, and we propose optical implementations of the present model by using ZnSe interference filters to test the predictions of the theory.(22) in conventional neural network models of associative memory (4-6). The dynamics in the present model is different, however; the input-output response functions for both the conventional and the present model are given in Figs. 1 and 2, respectively. In the conventional model, hysteresis does not exist in the neuronal response function (see Fig. 1). For simplicity, we focus on the discrete case shown by Fig. 2A, and we consider a synchronous updating algorithm (4,8,20,21).Suppose thatis the total input signal for the ith neuron, where Sj(t) represents the state of the jth neuron at time t,Neural networks (1-21) have become the focus of considerable research effort recently (for recent reviews on neural networks, see refs. 1-3). These seemingly simple systems show intriguing properties such as learning, memory, and fault-tolerant information retrieval. Two key features of a neural network model are (i) the properties of each individual neuron and (ii) the connectivity between neurons. Variations in either the properties of a single neuron or synaptic correlations among neurons are expected to alter the emergent characteristics of the neural network.In the present paper, we consider theoretically a feature new to conventional synchronous neural networks of associative memory-that is, nonlinear threshold elements with hysteresis. The existence of hysteresis at the level of a single neuron has been recently proposed by Hoffmann (18) in a neural network model based on the analogy with the immune system. The purpose of our present paper is to adopt and apply Hoffmann's suggestion of hysteresis at a single neuron level and determine its consequences in a synchronous neural network. We show that the retrieval property in the presence of noise and the memory capacity of the network in the present model are better than that of conventional synchronous models, where it has been assumed that there is no such hysteresis. Inclusion of higher-order interaction further improves these adva...