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Araki, 1984, states that the connection from EP to LHb is GABAergic (Araki et al., 1984) but Shabel 2012 qualifies it as excitatory and glutamatergic (Shabel et al., 2012).
Mok and Mogenson (1974) proposed that the actual connection was mainly excitatory. A view supported by Poller et al. (2013) who found a strong glutamatergic projection that targeted VTA and RMTg projecting neurons.
The LHb also receives DA input from the midbrain VTA and SNc (Kowski et al., 2009) and reciprocally its main, inhibitory projections are to the VTA, SNc and the DRN (Christoph et al., 1986; Rajakumar et al., 1993; Ji and Shepard, 2007).
Slightly puzzling is that the effect on the VTA by the LHb is known to be inhibitory. Hong et al. (2011) theorise that as LHb neurons are largely glutamatergic their inhibitory function must be through an intermediary, the RMTg.
The LHb is considered to be the main source of the negative reward signal that facilitates the DA reward prediction error as LHb innervation inhibits midbrain DA (Shen et al., 2012; Barrot et al., 2012; Shabel et al., 2012; Matsumoto and Hikosaka, 2007).