Recurrent interactions can explain the variance in single trial responses.

To develop a complete description of sensory encoding, it is necessary to account for trial-to-trial variability in cortical neurons. Using a linear model with terms corresponding to the visual stimulus, mouse running speed, and experimentally measured neuronal correlations, we modeled short term dynamics of L2/3 murine visual cortical neurons to evaluate the relative importance of each factor to neuronal variability within single trials. We find single trial predictions improve most when conditioning on the experimentally measured local correlations in comparison to predictions based on the stimulus or running speed. Specifically, accurate predictions are driven by positively co-varying and synchronously active functional groups of neurons. Including functional groups in the model enhances decoding accuracy of sensory information compared to a model that assumes neuronal independence. Functional groups, in encoding and decoding frameworks, provide an operational definition of Hebbian assemblies in which local correlations largely explain neuronal responses on individual trials.