Abstract
We provide a construction of noncommutative Jordan algebras of degree two. The construction can be iterated, and we show that after the first few iterations no new derivations arise. The relationship between this iterative process and the Cayley-Dickson process is studied, and the result on deriva¬tions is used to obtain a generalization of Schafer's classical theorem on the derivation algebras of Cayley-Dickson algebras.
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