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Income inequality has been empirically linked to interpersonal competition and risk-taking behaviors, but a separate line of findings consistently shows that individuals have inaccurate perceptions of the actual levels of income inequality in society. How can inequality be both consistently misperceived and yet a reliable predictor of behavior? The present study extends both these lines of research by evaluating if the scope of input used to assess income inequality (i.e., at the national, state, county, or postal code level) can account for perception discrepancies and if actual/perceived inequality is associated with female intrasexual competition. Female participants recruited online from the general US population (n = 691) provided demographic information, measures of perceived income inequality, and measures of intrasexual competition attitudes and behavior. Actual and perceived income inequality (at any level) did not predict negative attitudes toward other women or female weighting of physical appearance as a desirable trait. Perceived income inequality and actual county-level inequality was, however, predictive of female competition in the form of self-sexualization clothing choice. Further analyses found that age and importance placed on physical attractiveness also predicted women's clothing choices. Perceptions of income inequality were predicted not by actual Gini indices, but by beliefs about the levels of poverty and income gaps. These results highlight the importance of better understanding the proximate cues by which people perceive environmental features such as inequality, and how those cues are used to adjust interpersonal behaviors. [ABSTRACT FROM AUTHOR]