An old explanation of the moon illusion holds that Various cues place the h
orizon moon at an effectively greater distance than the elevated moon. Alth
ough both moons have the same angular size, the horizon moon must be percei
ved as larger. More recent explanations hold that differences in accommodat
ion or other factors cause the elevated moon to appear smaller. As a result
of this illusory difference in size, the elevated moon appears to be more
distant than the horizon moon. These two explanations, both based on the ge
ometry of stereopsis, lead to two diametrically opposed hypotheses. That is
, a depth interval at a long distance is associated with a smaller binocula
r disparity, whereas an equal depth interval at a smaller distance is assoc
iated with a larger disparity. We conducted experiments involving artificia
l moons and confirmed the hypothesis that the horizon moon is at a greater
perceptual distance. Moreover, when a moon of constant angular size was mov
ed closer it was also perceived as growing smaller, which is consistent wit
h the older explanation. Although Emmert's law does not predict the size-di
stance relationship over long distances, we conclude that the horizon moon
is perceived as larger because the perceptual system treats it as though it
is much farther away. Finally, we observe that recent explanations substit
ute perceived size for angular size as a cue to distance. Thus, they imply
that perceptions cause perceptions.