Contents: Preface. Preface to the Second Edition. Brain and Machine: The Same Principles? Historical Outline. Associative Learning and Synaptic Plasticity. Competition, Lateral Inhibition, and Short-Term Memory. Conditioning, Attention, and Reinforcement. Coding and Categorization. Optimization, Control, Decision, and Knowledge Representation. A Few Recent Technical Advances. Appendices: Basic Facts of Neurobiology. Difference and Differential Equations in Neural Networks.