The Haas effect is a psychoacoustic effect, described in 1949 by Helmut Haas in his Ph.D. thesis. It is often equated with the underlying precedence effect (or law of the first wavefront). Haas found that humans localize sound sources in the direction of the first arriving sound despite the presence of a single reflection from a different direction. A single auditory event is perceived. A reflection arriving later than 1 ms after the direct sound increases the perceived level and spaciousness (more precisely the perceived width of the sound source). A single reflection arriving within 5 to 30 ms can be up to 10 dB louder than the direct sound without being perceived as a secondary auditory event (echo).
I found this demonstration, using a monaural program source, no less than amazing.
http://www.youtube.com/watch?v=UQOkSF8auFc