John F. Nash Jr.

Definition of 'John F. Nash Jr.'


An American mathematician who won the 1994 Nobel Memorial Prize in Economics, along with John Harsanyi and Reinhard Selten, for his development of the mathematical foundations of game theory. Nash Jr.'s research differentiated between cooperative and non-cooperative games. He also developed an equilibrium theory known as the Nash Equilibrium (of which the prisoner's dilemma is a well-known example).

Investopedia explains 'John F. Nash Jr.'


Born in West Virginia in 1928, Nash Jr. trained not as an economist but as a mathematician, earning his Ph.D. in math from Princeton at the age of 22. He taught math at the Massachusetts Institute of Technology and worked for the RAND Corporation, but his paranoid schizophrenia negatively affected his career for about two and a half decades. The 2001 Academy Award-winning film "A Beautiful Mind" is based on his life and the struggle between his genius and his mental illness.



comments powered by Disqus
Hot Definitions
  1. 80-10-10 Mortgage

    A mortgage transaction in which a first and second mortgage are simultaneously originated. The first position lien has an 80% loan-to-value ratio, the second position lien has a 10% loan-to-value ratio and the borrower makes a 10% down payment. 80-10-10 mortgage transactions are piggy-back mortgage transactions, and are frequently used by borrowers to avoid paying private mortgage insurance.
  2. Passive ETF

    One of two types of exchange-traded funds (ETFs) available for investors. Passive ETFs are index funds that track a specific benchmark, such as a SPDR. Unlike actively managed ETFs, passive ETFs are not managed by a fund manager on a daily basis.
  3. Walras' Law

    An economics law that suggests that the existence of excess supply in one market must be matched by excess demand in another market so that it balances out. So when examining a specific market, if all other markets are in equilibrium, Walras' Law asserts that the examined market is also in equilibrium.
  4. Market Segmentation

    A marketing term referring to the aggregating of prospective buyers into groups (segments) that have common needs and will respond similarly to a marketing action. Market segmentation enables companies to target different categories of consumers who perceive the full value of certain products and services differently from one another.
  5. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following:
  6. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option is purchased and the lower premium option is sold - both at the same time. The higher the debit spread, the greater the initial cash outflow the investor will incur on the transaction.
Trading Center