Subjects were given a prediction task in which they had to learn that one cue, P (positive), was followed by the outcome, and a compound of P and another cue, N (negative), was not followed by the outcome. Next, N was tested in compound with a transfer cue, T, which had signalled the outcome but had never been compounded with N. Experiment 1 confirmed an important assumption of the Rescorla-Wagner model (Wagner & Rescorla, 1972) that negation of T should depend on the specific P cue compound with N being positively contingent. Experiments 2 and 3 confirmed the model's prediction that no decrement in negative transfer should be observed following postlearning devaluation of P. Unfortunately, the model did not anticipate that a large proportion of devaluation trials relative to learning trials would attenuate negative transfer (Experiment 4), nor did it predict that negative transfer would occur when P was neutral during the learning stage and was only later made positive (Experiment 3). The results can be accommodated by the Rescorla-Wagner model if one assumes that absent cues have their associative strengths altered.