The study of masked thresholds in dichotic noise maskers is important for understanding the processing in binaural hearing. To simulate these thresholds a psychoacoustically motivated perception model was used [T. Dau et al. (1995). ``A quantitative model of the ``effective'' signal processing in the auditory system: I. Model structure,'' submitted to J. Acoust. Soc. Am.]. This model, which has been successfully applied to several monaural psychoacoustical experiments, was extended by an additional binaural processing unit. It consists of a filterbank, half-wave rectifier, low-pass filter, and adaptation loops, which model the temporal processing. The binaural processing unit detects the interaural correlation and makes decisions based on t...