It exaggerates the contrast between edges of the slightly differing shades of gray, as soon as they contact one another, by triggering edge-detection in the human visual system.
[1] The Mach bands effect is due to the spatial high-boost filtering performed by the human visual system on the luminance channel of the image captured by the retina.
[3] The visual pattern is often found on curved surfaces subject to a particular, naturally-occurring illumination, so the occurrence of filtering can be explained as the result of learnt image statistics.
This visual phenomenon is important to keep in mind when evaluating dental radiographs for evidence of decay, in which grayscale images of teeth and bone are analyzed for abnormal variances of density.
[8] Mach bands can also appear when there is a discontinuity in the derivative of a gradient, a visual effect common when intensities are linearly interpolated such as in Gouraud shading.