A theoretical study of elements of the quantum electrodynamic interaction between two single-electron atoms in near-field contact is presented. The framework of the study is an electromagnetic propagator formalism that allows one to describe the near-field space-time interaction in such a manner that the Einstein causality and lack of photon localizability are manifest. First we set up the atom-field Hamiltonian in the so-called G-gauge, starting from the Coulomb Hamiltonian, and thereafter we show that this leads to a correct propagator description for the retarded part of the transverse electromagnetic field (operator). In the G-gauge approach, renormalization of the two-particle energy level structure stemming from the transverse self-field occurs. The intraparticle renormalization is calculated for a three-level atom (it is trivial for a two-level atom), and the interparticle renormalization, which depends on the atomic separation, is determined for two two-level atoms. The magnitude of the energy renormalization is always finite in our theory because we do not consider the atoms to be point-like objects from an electromagnetic point of view. Throughout, we relate our G-gauge formalism to the multipole theory often used in studies of interatomic electrodynamics.
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