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asimov42 said:At present, if one uses the perturbative approach to calculate the S-matrix, incorporating the higher order (virtual string) processes, the solution diverges, is this correct?
Yes, the perturbation series of every non-toy QFT diverges (Dyson 52).
The modern perspective is that these series are to be regarded as "asymptotic series".
asimov42 said:Presumably (hopefully!) then, a non-perturbative approach would suppress contributions from virtual processes (loops), leading to a finite result for string amplitudes. Is this essentially correct?
Concepts like "virtual loops" only exist in perturbation theory. The renormalized Feynman perturbation series is finite at each loop order , and so is the string perturbation series (not proven rigorously though, i suppose) but both still diverge when summing up all loop orders.
See also the string theory FAQ at Isn't it fatal that the string perturbation theory does not converge?
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