Dilations of C*-Correspondences and the Simplicity of Cuntz–Pimsner Algebras

We develop a dilation theory for C*-correspondences, showing that every C*-correspondence E over a C*-algebra A can be universally embedded into a Hilbert C*-bimodule X_E over a C*-algebra A_E such that the crossed product A_E  is naturally isomorphic to A_EXE  . The Cuntz–Pimsner algebra _E is isomorphic to _{E E}  where _E and _E are quotients of A_E, resp. X_E.  If E is full and the left action is by generalized compact operators, then _E is an equivalence bimodule or, equivalently, an invertible C*-correspondence. In general, _E is merely an essential Hilbert C*-bimodule. Slightly extending previous results on crossed products by equivalence bimodules, we apply our dilation theory to show that for full C*-correspondences over unital C*-algebras, _E is simple if and only if E is minimal and nonperiodic, extending and simplifying results of Muhly and Solel and Kajiwara, Pinzari, and Watatani.