Abstract
The first construction of the integrable highest-weight representations of affine Lie algebras or loop algebras by Kac i-K] was greatly inspired by the generalization of the Weyl denominator formula for affine roots systems discovered earlier by Macdonald [M]. Though the Macdonald identity found its natural context in representation theory, its mysterious modular invariance was not understood until the work of Witten [W-I on the geometric realization of representations of the loop groups corresponding to loop algebras. The work of Witten clearly indicated that the representations of loop groups possess a very rich structure of conformal field theory which appeared in physics literature in the work of Belavin, Polyakov, and Zamolodchikov [BPZ-I. Independently (though two years later), Borcherds, in an attempt to find a conceptual understanding of a certain algebra of vertex operators invariant under the Monster [FLM1], introduced in [B-I a new algebraic structure. We call vertex operator algebras a slightly modified version of Borcherd’s new algebras [FLM2].
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