There is a large literature on lateral effects in pattern vision but no consensus about them or comprehensive model of them. This paper reviews the literature with a focus on the effects of parallel context in the central fovea. It describes seven experiments that measure detection and discrimination thresholds in annular and Gabor-pattern contexts at different separations. It presents a model of these effects, which is an elaboration of Foley's (1994) model. The model describes the results well, and it shows that lateral context affects the response to the target by both multiplicative excitation and additive inhibition. Both lateral effects extend for several wavelengths beyond the target. They vary in relative strength, producing near suppression and far enhancement of the response to the target. The model describes the detection and discrimination results well, and it also describes the results of experiments on lateral effects on perceived contrast. The model is consistent with the physiology of V1 cells.