Abstract
A new energy-based stochastic extension of the Schrödinger equation for which the wave function collapses after the passage of a finite amount of time is proposed. An exact closed-form solution to the dynamical equation, valid for all finite-dimensional quantum systems, is presented and used to verify explicitly that reduction of the state vector to an energy eigenstate occurs. A time-change technique is introduced to construct a “clock” variable that relates the asymptotic and the finite-time collapse models by means of a nonlinear transformation.