This is from this week's New Scientist.  I've shortened it and
followed up the reference - it doesn't give a lot more other than
experimental methodology.

The brain regions responsible for our ability to organise the world
into separate concepts have been pinpointed.
Forming a concept involves selecting the important characteristics of
our experiences and categorising them. The degree to which we are able
to do this effectively is a defining characteristic of human
intelligence.  The method here was about showing fractal patterns and
getting people to forecast the weather on the basis of them.
Conceptual rules based on the positions and combinations of the
patterns governed whether the resulting outcome would be rain or sun,
but the volunteers were not told this. Instead correct predictions
were rewarded with cash prizes, encouraging the volunteers to deduce
these conceptual rules. In an initial learning phase, the different
possible combinations were repeatedly shown to the participants. While
they could make their predictions by simply memorising previous
outcomes, they could also begin to realise that rules based on the
positions and combinations of the patterns governed whether the result
would be rain or sun.  In a second phase, the volunteers were provided
with less information to encourage them to apply the rules they had
identified. This enabled the researchers to separate those volunteers
who had formed the concept in the learning phase from those who
hadn't.

During both experiments fMRI scanning was used to identify areas of
brain activity. In the first phase, researchers could tell if a
volunteer would go on to apply concepts in the second phase by the
degree of activity in their hippocampus, which is known to be
responsible for learning and memory. In the second phase, activity
centred on the ventromedial prefrontal cortex (vMPFC), important in
decision-making, was active.  The team concluded that the hippocampus
creates and stores concepts, and passes this information onto the
vMPFC where it is put to use during the making of decisions.
Journal reference: Neuron, vol 63, p 889

Where the hippocampus is damaged, other brain areas may compensate if
the damage occurs early enough in life.  This work may have medical
applications.  I don't find it very interesting - but I do wonder
whether a better understanding of what we can know about how the brain
works might inform our discussions on such matters as consciousness,
morality and just what the 'Mind's Eye' might be.  My interest is in
whether we could enter more democratic forms of decision-making by
using reliable memory and concept storage outside individual brains.
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