A parametric study of the ΔIjnd for the lateralization of transients (i.e., the smallest change in intensity of a transient at one ear required to displace a click image from some referent ΔIposition) was performed. Referent ΔI's were generated by presenting a click to one ear and a less intense click to the other ear. The ΔIjnd was determined by a further attenuation of the less intense click. The results indicate that click sensation level and the referent ΔIinteract in determining the ΔIjnd. These results do not conform with predictions made by the latency‐intensity conversion hypothesis, which has been advanced as a model for the lateralization of transients. An alternative model based on the premise that the ΔIjnd for the lateralization of transients is related to themonoticjnd for intensity was tested and confirmed.