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In this paper we explain the strikingly regular activity of the 'grid' cellsin rodent dorsal medial entorhinal cortex (dMEC) and the spatially localizedactivity of the hippocampal place cells in CA3 and CA1 by assuming that thehippocampal region is constructed to support an internal dynamical model of thesensory information. The functioning of the different areas of thehippocampal-entorhinal loop and their interaction are derived from a set ofinformation theoretical principles. We demonstrate through simpletransformations of the stimulus representations that the double form of spacerepresentation (i.e. place field and regular grid tiling) can be seen as acomputational 'by-product' of the circuit. In contrast to other theoretical orcomputational models we can also explain how place and grid activity may emergeat the respective areas simultaneously. In accord with recent views, ourresults point toward a close relation between the formation of episodic memoryand spatial navigation.

Model of the hippocampal formation explains the coexistence of grid cells and place cells