The transposed word effect is consistent with serial word recognition and varies with reading speed.

The scientific study of reading has long been animated by questions of parallel vs. serial processing. Do readers recognize words serially, adding each one sequentially to a representation of the sentence structure? One fascinating phenomenon to emerge from this research is the transposed word effect: when asked to judge whether sentences are grammatical, readers often fail to notice grammatical errors caused by transposing two words. This effect could be evidence that readers recognize multiple words in parallel. Here we provide converging evidence that the transposed word effect is also consistent with serial processing because it occurs robustly when the words in each sentence are presented serially. We further investigated how the effect relates to individual differences in reading speed, to gaze fixation patterns, and to differences in difficulty across sentences. In a pretest, we first measured the natural English reading rate of 37 participants, which varied widely. In a subsequent grammatical decision task, we presented grammatical and ungrammatical sentences in two modes: one with all words presented simultaneously, and the other with single words presented sequentially at each participant's natural rate. Unlike prior studies that used a fixed sequential presentation rate, we found that the magnitude of the transposed word effect was at least as strong in the sequential presentation mode as in the simultaneous mode, for both error rates and response times. Moreover, faster readers were more likely to miss transpositions of words presented sequentially. We argue that these data favor a "noisy channel" model of comprehension in which skilled readers rely on prior knowledge to rapidly infer the meaning of sentences, allowing for apparent errors in spatial or temporal order, even when the individual words are recognized one at a time.