ABSTRACT: Adaptive network and exemplar-similarity models were compared on their ability to predict learning and transfer data. An exemplar-based network (Kruschke 1990a, 1990b, 1992) that combines key aspects of both modeling approaches was also tested. The exemplar-based network incorporates an exemplar-based category representation in which exemplars become associated to categories through the same error-driven, interactive learning rules that are assumed in standard adaptive networks. Experiment 1, which partially replicated and extended the probabilistic classification learning paradigm of Gluck and Bower (1988a), demonstrated the importance of an error-driven learning rule. Experiment 2, which extended the classification learing paradigm of Medin and Schaffer (1978) that discriminated between exemplar and prototype models, demonstrated the importance of an exemplar-based category representation. Only the exemplar-based network accounted for all the major qualitative phenomena; it also achieved good quantitative predictions of the learning and transfer data in both experiments.