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We analyze neuron models in which the maximal conductances ofmembrane currents are slowly varying dynamic variables regulated bythe intracellular calcium concentration. These models allow us tostudy possible activity-dependent effects arising from processesthat maintain and modify membrane channels in real neurons.Regulated model neurons maintain a constant average level ofactivity over a wide range of conditions by appropriately adjustingtheir conductances. The intracellular calcium concentration acts asa feedback element linking maximal conductances to electricalactivity. The resulting plasticity of intrinsic characteristics hasimportant implications for network behavior. We first study asimple two-conductance model, then introduce techniques that allowus to analyze dynamic regulation with an arbitrary number ofconductances, and finally illustrate this method by studying aseven-conductance model. We conclude with an analysis ofspontaneous differentiation of identical model neurons in atwo-cell network.