2 00 6 Self - Similar Groups , Algebras and Schur

In the first part of the article we introduce C-algebras associated to self-similar groups and study their properties and relations to known algebras. The algebras are constructed as sub-algebras of the Cuntz-Pimsner algebra (and its homomorphic images) associated with the self-similarity of the group. We study such properties as nuclearity, simplicity and Morita equivalence with algebras related to solenoids. The second part deals with the Schur complement transformations of elements of self-similar algebras. We study properties of such transformations and apply them to the spectral problem for Markov type elements in selfsimilar C∗−algebras. This is related to the spectral problem of the discrete Laplace operator on groups and graphs. Application of the Schur complement method in many situations reduces the spectral problem to study of invariant sets (very often of the type of a “strange attractor”) of a multidimensional rational transformation. A number of illustrating examples is provided. Finally we observe a relation between the Schur complement transformations and Bartholdi-Kaimanovich-Virag transformations of random walks on self-similar groups.