English: The schematic illustrates a model of hepatoblast differentiation into hepatocytes or biliary epithelial cells (BEC). Bi-potential hepatoblasts express fetal liver genes (Afp) as well as markers of both hepatocytes (Albumin) and BECs (CK19). Evidence suggests that signals (possibly TGFβ and Wnts) from the periportal mesenchyme enhance the expression of BEC promoting transcription factors (OC1, OC2, HNF1β) in the adjacent hepatoblasts, while at the same time these signals repress the expression of hepatogenic transcription factors (HNF4 and C/EBP). In contrast hepatoblasts in the parenchyma (that do not experience the periportal mesenchyme signals) up regulate the expression of hepatogenic factors. Mutual antagonism between the two groups of transcription factors is thought to reinforce this lineage segregation. Continued signaling (Notch, EGF and HGF) from the periportal mesnechyme are essential for ductal plate remodeling, while other factors (OSM, Dex, HGF and Wnt) promote hepatocyte maturation.