The effect of amplitude modulation related grouping on the precedence effect Bernhard U. Seeber MRC Institute of Hearing Research Science Rd., University Park, Nottingham, UK, NG7 2RD The precedence effect describes our ability to suppress detrimental effects of reflections on localisation of sound sources in rooms. We recently demonstrated with cochlear implant simulations that the precedence effect can break down such that the reflection is audible in addition to the leading sound. It appears that the reflection can not be grouped, integrated with the leading sound, hence it is heard separately as an echo. How does the auditory system know which reflection belongs to a particular direct sound, particularly at long delays? Studies on auditory scene analysis showed that common onsets and coherent amplitude modulation (AM) serve as grouping cues. For the precedence effect, where lead and lag do not occur simultaneously, this suggests that onsets should facilitate segregation of the lag from the lead. On the other hand, AM in the envelope could provide information to identify the lag as a copy of the lead despite the delay. We investigated the effect of AM on echo thresholds for independent lead-lag delays of the fine structure and of the amplitude modulation of the envelope. AM had a strong influence on the precedence effect: at some envelope delays between lead and lag, no echo thresholds could be determined, while for others, echo thresholds were elevated above the unmodulated baseline. The latter suggests that AM can serve as a grouping cue, not only modulating but even enhancing the fusion of the lag with the lead, as it is visible through changes of the echo threshold. The echo threshold was partly predicted by the coherence between lead and lag, a measure of fine structure similarity. This is because the AM attenuates parts of the signal, thus affecting coherence between lead and lag at particular delays. Acknowledgements This work was supported by the MRC.