To summarize: the ear does not do a Fourier transform, but it does do a time-localized frequency-domain transform akin to wavelets (specifically, intermediate between wavelet and Gabor transforms). It does this because the sounds processed by the ear are often localized in time. The article also describes a theory that human speech evolved to occupy an unoccupied space in frequency vs. envelope duration space. It mak…
I think I might be missing something basic, but if you actually wanted to do a Fourier transform on the sound hitting your ear, wouldn't you need to wait your entire lifetime to compute it? It seems pretty clear that's not what is happening, since you can actually hear things as they happen.
It's called the short-time Fourier transform (STFT).