The model of binaural interaction proposed by Békésy in 1930 which has received very little attention in modern theories is re‐examined the light of recent anatomical and physiological findings. A modified model is proposed in which time and intensity are mapped independent of each other in the accessory nuclei of the superior olive; excitatory and inhibitory neural signals interact at the accessory nucleus neurons, giving rise to time‐intensity trade. The behavior of the model is in qualitative accord with psychophysical and physiological observations.

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