He graduated from the University of Chicago with a bachelor's degree in philosophy, and later earned a master's degree and PhD in economics from the same university.
During his career he worked at the Rand Corporation, General Electric, IBM, Rutgers University, Baruch and the University of California at San Diego.
Winner of the 1990 Nobel Prize in economics. His co-laureates were Merton Miller at the University of Chicago and William Sharpe at Stanford University.