Abstract
We adopt a 'thermodynamical' formulation of Mach's principle that the rest mass of a particle in the Universe is a measure of its long-range collective interactions with all other particles inside the horizon. We consider all particles in the Universe as a 'gravitationally entangled' statistical ensemble and apply the approach of classical statistical mechanics to it. It is shown that both the Schrodinger equation and the Planck constant can be derived within this Machian model of the universe. The appearance of probabilities, complex wave functions, and quantization conditions is related to the discreetness and finiteness of the Machian ensemble.
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