Few scholars have examined perceptions of electoral competition, and those who have (Ferejohn and Fiorina 1974) find no link between perceptions and voting behavior. We find that individuals’ perceptions of electoral competition are related to exposure to a close race in their U.S. House district but do not match reality. This is because perceptions are colored by “wishful thinking” in that individuals believe their favored candidate will win a close election (Uhlaner and Grofman 1986). Once we control for wishful thinking, we find that perceptions of electoral competition are associated with political participation, while actual levels of competition in one’s House district are not. Although numerous studies find that higher levels of actual electoral competition are associated with increased turnout, this is the first to find evidence of links between actual electoral competition, perceived electoral competition, and voting behavior. Measuring perceptions—and understanding how they differ from reality—may be important for scholars of public opinion and political behavior.