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This paper presents an examination of the significance of residential sorting or self selection effects in understanding the impacts of the built environment on travel choices. Land use and transportation system attributes are often treated as exogenous variables in models of travel behavior. Such models ignore the potential self selection processes that may be at play wherein households and individuals choose to locate in areas or built environments that are consistent with their lifestyle and transportation preferences, attitudes, and values. In this paper, a simultaneous model of residential location choice and commute mode choice that accounts for both observed and unobserved taste variations that may contribute to residential self selection is estimated on a survey sample extracted from the 2000 San Francisco Bay Area household travel survey. Model results show that both observed and unobserved …