Interaural time and intensity disparities (ITD and IID) are the two cues to sound lateralization. "Time-only'' hypothesis claims that an IID is first converted to an interaural afferent delay (Delta t), and is then processed by the central ITD mechanism, rendering a separate IID processor unnecessary. We tested this hypothesis by assessing the contribution of the cochlear latency effect to the psychophysical ITD/IID trading ratio. Auditory brainstem responses (ABRs) were used to measure the interaural afferent delays (Delta ts) that developed with a 20/sec dichotic click train used in the trading experiment. Except for small IIDs at low loudness levels, the physiological Delta t delay produced by an IID was significantly smaller than the ITD psychophysically traded for the same IID. We concluded that the cochlear latency effect alone cannot explain the psychophysical ITD/IID trading ratios and a separate IID mechanism must be involved.