A number of studies have demonstrated neighborhood effects in spoken word recognition (Goldinger, Luce, & Pisoni, 1989;Luce, Pisoni, & Goldinger, 1990). The neighborhood effect refers to the finding that perception of a word (or a nonsense word) is affected by the number and frequency of occurrence of similar-sounding words in the language. For example, Luce and Pisoni (1998) found that words that are similar to many words in the language (e.g., cat, kit, pat, and cap) are responded to more slowly than words with fewer neighbors, in both lexical decision and naming tasks. Goldinger et al. (1989) demonstrated similar effects in a priming task, and Cluff and found that identification performance for spondees (two-syllable words composed of two monosyllabic words, such as baseball) was influenced by the size of the neighborhood for each syllable. Finally, Vitevitch and Luce (1999) demonstrated neighborhood effects in same-different matching and in semantic categorization (animate vs. inanimate), showing that these effects occur even in tasks that do not focus attention on the sound pattern of the words.Newman, Sawusch, and Luce (1997) demonstrated that neighborhoods also play a role in phonetic perception.Their study was modeled after experiments by Ganong (1980), in which the lexical effect was examined. The lexical effect refers to the finding that perception of an ambiguous phonetic segment is affected by the lexical status of the syllable in which that segment occurs. Ganong presented listeners with pairs of voice onset time (VOT) continua, such that only one endpoint in each continuum constituted a real word in English. For example, one pair of continua included items ranging from the word beef to the nonword peef and from the nonword beace to the word peace. Listeners were more likely to label the ambiguous items in the middle of the two series as a real word. Thus, an item ambiguous between b and p would be labeled as a b in the beef to peef series, but as a p in the beace to peace series. Newman et al. (1997) demonstrated a similar effect of lexical neighborhood. They used pairs of series in which none of the four endpoints were real words but one endpoint of each pair was similar to a greater number of real words in the language. For example, one pair of series included items ranging from gice to kice and gipe to kipe, where gice is similar to more words than is kice and kipe is similar to more words than is gipe. Listeners classified ambiguous items as being whichever endpoint made them similar to more actual words in English.The results in Newman et al. (1997) clearly demonstrate that lexical neighborhoods can influence phoneme perception. However, the precise nature of how the lexicon exerts this influence is still unclear. Most important, it is not entirely clear what constitutes the set of words that influence phoneme perception. Newman et al. (1997) followed the one-phoneme change rule described by Luce (1987), in which all words that differ from the target word by the addition, deletion, or substit...