Thyroid-stimulating hormone (TSH)-induced reduction in ligand binding affinity (negative cooperativity) requires TSH receptor (TSHR) homodimerization, the latter involving primarily the transmembrane domain (TMD) but with the extracellular domain (ECD) also contributing to this association. To test the role of the TMD in negative cooperativity, we studied the TSHR ECD tethered to the cell surface by a glycosylphosphatidylinositol (GPI) anchor that multimerizes despite the absence of the TMD. Using the infinite ligand dilution approach, we confirmed that TSH increased the rate of dissociation (k off ) of prebound 125 I-TSH from CHO cells expressing the TSH holoreceptor. Such negative cooperativity did not occur with TSHR ECD-GPI-expressing cells. However, even in the absence of added TSH, 125 I-TSH dissociated much more rapidly from the TSHR ECD-GPI than from the TSH holoreceptor. This phenomenon, suggesting a lower TSH affinity for the former, was surprising because both the TSHR ECD and TSH holoreceptor contain the entire TSH-binding site, and the TSH binding affinities for both receptor forms should, theoretically, be identical. In ligand competition studies, we observed that the TSH binding affinity for the TSHR ECD-GPI was significantly lower than that for the TSH holoreceptor. Further evidence for a difference in ligand binding kinetics for the TSH holoreceptor and TSHR ECD-GPI was obtained upon comparison of the TSH K d values for these two receptor forms at 4°C versus room temperature. Our data provide the first evidence that the wild-type TSHR TMD influences ligand binding affinity for the ECD, possibly by altering the conformation of the closely associated hinge region that contributes to the TSH-binding site.The term "negative cooperativity" was coined in 1973 by de Meyts et al.(1) to interpret curvilinear Scatchard plots (2) observed with insulin and other receptors, i.e. occupancy of a receptor by a ligand at one site leads to an allosteric effect at another binding site, causing a reduction in binding affinity. Early studies prior to the molecular cloning of the thyroidstimulating hormone (TSH) 2 receptor (TSHR) cDNA suggested that ligand-induced negative cooperativity did not occur with this receptor (3, 4). Nearly 2 decades later, it was observed that expressing increasing numbers of recombinant TSHR on the surface of transfected cells was associated with a reduction in TSH binding affinity (5). This phenomenon suggested that enhanced interactions at higher receptor densities led to a ligand-independent form of negative cooperativity. In recent years, TSHRs were found to form homodimers or multimers on the cell surface (6, 7), like other members of the glycoprotein hormone receptor family (reviewed in Refs. 8 and 9). Using chimeric receptor molecules combined with the classical infinite ligand dilution approach of de Meyts et al., Urizar et al. (7) provided convincing evidence for ligand-induced negative cooperativity in which TSH binding to one protomer increased the rate of dissociation (k off )...