Understanding lists in JavaScript

I am reading through Eloquent JavaScript and have been stuck trying to understand lists for about two days so I figured I would finally ask a question. The example they give in the book is:

var list = {
  value: 1,
  rest: {
    value: 2,
    rest: {
      value: 3,
      rest: null
    }
  }
};

Now I think I understand the example... There is a list object and it has properties value and rest. Then, rest has properties of value and rest, etc... However, I don't understand what rest is or even stands for. Does the rest property contain an object? So, list.rest.value would == 2? How is this useful? Some ways I could see this as useful are having a list Car, with prop engine, gauge, etc, with further properties of accelerate, brake, low fuel... How would something like this be achieved?

I do apologize for the "all overness" of this post, I don't exactly know what to ask or how to phrase it. It seems like the book only explained objects and properties, but never actually having objects as an objects property.

Thank you all in advance, and if you need any clarification or more info I will try to provide it.