The Moon illusion is an optical illusion in which the Moon appears larger near the horizon than it does while higher up in the sky. This optical illusion also occurs with the sun and star constellations. It has been known since ancient times, and recorded by numerous different cultures. The explanation of this illusion is still debated.
My theory is it is to due to the curvature of the lens of the eye.
It could be that When an object is seen through the lens, the curvature of the eye means that the object is different size on different parts of the lens, or that that as the pupil moves up and down on the eye. As you lift your head up to see the moon in the sky. You normally raise your pupils up to see this. This means they are at a different position on the eye. So it will have a different position on the eye. I am sure if you life your head up to see somthing with your pupils pointing up things seem smaller than if you lift your head up to look with your pupil in the middle of your eye.
On their other hand it might be to do with the rod, or cones nerve cells.
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