New Theory for Why Moon Appears Larger Near the Horizon

[DrQ]

One of the classic optical illusions involves the Moon, which appears larger near the horizon than overhead.  This illusion has been known and discussed for centuries and yet its explanation is still hotly contested. We discussed this optical illusion in "Seeing It All at Once with Barry," CMG 2007 (PDF). 

A new theory claims that the illusion occurs because of a contradiction between the way the brain compares (I would say, computes) distance cues from its perceptual model of the world and cues from binocular vision.