People tend to perceive ongoing continuous activity as series of discrete events. This partitioning of continuous activity may occur, in part, because events correspond to dynamic patterns that have recurred across different contexts. Recurring patterns may lead to reliable sequential dependencies in observers' experiences, which then can be used to guide perception. The current set of simulations investigated whether this statistical structure within events can be used 1) to develop stable internal representations that facilitate perception and 2) to learn when (...) to update such representations in a self-organizing manner. These simulations demonstrate that experience with recurring patterns enables a system to accurately predict upcoming stimuli within an event, to identify boundaries between such events based on transient increases in prediction error, and to use such boundaries to improve prediction about subsequent activities. (shrink)