We reported earlier [J. Acoust. Soc. Am.54, 310 (A) (1973)] that the time‐intensity trade for the residue is comparable to that of a low‐frequency tone equal in pitch to the residue, and different from the function for a signal of the carrier frequency. Consequently, the question arises as to whether the more central processing of the residue and a low‐frequency signal are sufficiently similar that they form a fused image when the residue is sent to one ear and a low‐frequency signal to the other. An experiment was conducted in which a 200‐Hz tone and a residue were presented simultaneously to opposite ears at various interaural phase relationships. Under such conditions, the subjects perceived the 200‐Hz tone in one ear and the residue in the contralateral ear, irrespective of the interaural phase relationship. Thus, it is suggested that the lateralization of the low‐pitched residue is mediated by a neurological mechanism substantially different from that activated by the 200‐Hz tone, even though both incorporate time‐intensity trading. This result is in keeping with other dissimilarities between psychoacoustic responses to the residue and to low‐frequency tones.