This is the 2nd of 2 papers reviewing laboratory studies of psychological deficit in schizophrenia. The present report first considers experiments on attention, set, and association. Research based on drive interpretation of deficit is then evaluated, followed by an assessment of psychophysiological studies of schizophrenia. 4 theories of deficit are discussed: social motivation, drive, arousal, and interference. It is suggested that a fundamental sensori-motor defect underlies psychological deficit in schizophrenia. A final section describes methodological problems raised by research reviewed in both papers. 1 The following abbreviations will be used: reaction time (RT), preparatory interval (PI), critical flicker frequency (CFF), galvanic skin response (GSR), electroencephalograph (EEG), electromyograph (EMG), autonomic nervous system (ANS), and stimulus generalization (SG).