  The dynamics of a nearly-AdS2 spacetime with boundaries is reduced to two
particles in the anti-de Sitter space. We determine the class of physically
meaningful wavefunctions, and prescribe the statistical mechanics of a black
hole. We demonstrate how wavefunctions for a two-sided black hole and a
regularized notion of trace can be used to construct thermal partition
functions, and more generally, arbitrary density matrices. We also obtain
correlation functions of external operators.
