Following von Neumann, we posit an observer resolution of the von Neum
ann chain in quantum measurement; that is, the von Neumann chain is as
sumed to terminate when a conscious observer makes an observation. It
has previously been shown by one of us (AG) that this interpretation o
f quantum mechanics, if construed within the philosophy of Platonic id
ealism, resolves all the usual paradoxes [Phys Essays 2, 385 (1989)].
However, the interpretation implies at once that the mind-brain is a m
acroscopic many-body quantum system [Found Phys. 12, 363 (1982); J. Mi
nd Behavior 11, 75 (1990); ibid., to be published] and that this syste
m does not quite ob conventional quantum mechanics (how else can the v
on Neumann chain terminate?), and an extension is necessary. In this p
aper we suggest such an extension in the form of a nonlinear Schroding
er equation; the nonlinear term is the self-referential measurement in
teraction of the system measuring itself. It is shown that observation
or measurement puts memory or conditioning in the physical system tha
t the observer represents, and after n measurements, n --> infinity, t
he system behaves classically. This encouraging, because conditioning
is one of the most important features of the mind-brain. The immense i
mplication of this solution in resolving the quantum/classical dichoto
my in physics is discussed. Some comments are made on the applicabilit
y of this theory to quantum cosmology.