How do we (humans) determine the direction/location of sound?
Our auditory systems use several cues for sound source localization, including:
- time differences between ears
- sound from the right side reaches the right ear earlier than the left ear
- the auditory system evaluates interaural time differences from:
- phase delays at low frequencies
- group delays at high frequencies
- level differences between ears
- spectral (frequency) information
- correlation analysis
- pattern matching
(http://en.wikipedia.org/wiki/Sound_localization)