Abstract
A new theory for gamma-ray burst radiation is presented. In this theory, magnetic fields and relativistic electrons are created through plasma processes arising as a relativistic shell passes through the interstellar medium. The gamma-rays are produced through synchrotron self-Compton emission. It is found that shocks do not arise in this theory, and that efficient gamma-ray emission only occurs for a high Lorentz factor and a high-density interstellar medium. The former explains the absence of gamma-ray bursts with thermal spectra. The latter provides the Compton attenuation theory with an explanation of why the interstellar medium density is always high. The theory predicts the existence of a class of extragalactic optical transient that emit no gamma-rays.

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