If the response evoked by sounds presented to both ears are subtracted from the sum of the responses evoked by sounds presented to the left and the right ear (L + R - B), the binaural interaction component is derived. It seems it is related to spatial localization.
An explanation of this derived BIC is (Pratt, 2011) :
L = activity of left monaural neurons + activity of binaural neurons
R = activity of right monaural neurons + activity of binaural neurons
B = activity of left monaural neurons + activity of right monaural neurons + activity of binaural neurons
L + R = activity of left monaural neurons + activity of right monaural neurons + 2 * activity of binaural neurons
BIC = L + R - B = activity of binaural neurons
[left monaural neuron: neuron that is capable of responding only to left ear stimulation
right monaural neuron: neuron that is capable of responding only to right right stimulation
binaural neuron: neuron that is capable of responding to stimulation at either ear]
I feel this explanation is oversimplified. Is there a more complicated but reasonable model of the BIC? Where and how is binaural interaction produced? Are there monaural neurons and binaural neurons at every level of auditory system (AN, CN, SOC, LL, IC, MGB)?