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This article develops an analytical framework to connect the theories of market and planning failures with the reasoning of incorporating land use and pricing policies for reducing driving and car dependence.A multilevel multinomial logit model(MML)is applied to estimate the effects of neighborhood land use characteristics and price variables on travel mode choice of nonwork trips and their interaction effects in the city of Austin,Texas.Results reveal that pricing policies are more efficient for reducing auto travel while land use policies appear better for adjusting nonauto travel.