A detection-theoretic analysis of the auditory localization of dual-impulse stimuli is described, and a model for the processing of spatial cues in the echo pulse is developed. Although for over 50 years "echo suppression" has been the topic of intense theoretical and empirical study within the hearing sciences, only a rudimentary understanding of its mechanisms has emerged. In this article, psychometric functions and results from matching studies are used in developing a model that specifies the perceived position of the echo pulse as a normal deviate, with an expectation that is a logistic function of the echo delay and a variance that depends on interaural time difference. Loss of information in the echo event is quantified as a decline in the efficiency with which the binaural system receives information from the lag impulse.