Why does the phonological similarity effect reverse with nonwords?

The detrimental phonological similarity effect (PSE), a robust finding in serial recall of words, sometimes reverses with nonwords. The current study tested the hypothesis that nonwords benefit from phonological similarity because they are harder to retrieve. In two experiments serial recall and serial reconstruction of visually presented words and nonwords were compared. Phonological similarity is known to have a positive effect on item memory and a negative effect on position accuracy in serial recall, and the demands on item retrieval were greatly reduced in the latter task. PSE occurred for words in both tasks and was reversed for nonwords in serial recall, but not in serial reconstruction-a new finding in the literature. The following conclusions can be made: (1) the detrimental PSE on order retrieval occurs irrespective of lexicality, in accordance with prominent short-term memory models; and (2), the positive PSE on item retrieval is crucially affected by lexicality, a finding less well explained by the existing models.