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Theoretical analysis and psychophysical measurements on human ability to lateralize sounds indicated that both interaural-time-difference (ITD) and interaural-level-difference (ILD) are significant cues for localization. In the present study we have used neural stochastic analysis for estimating the just noticeable difference (JND) of the ITD and ILD. The suggested model is founded upon the fine structure of the lower parts of the brainstem auditory pathway. The model calculations yielded the need for neural coincidence detection in various levels of the auditory pathway. Neural coincidence was introduced between neighboring ipsi lateral nerve fibers in the cochlea nuclei (CN), and between ipsi and contra lateral nerve fibers in the superior olivary complex (SOC). The model is consistent with experimental results as well as anatomical structure of the auditory pathway.