In this paper, we study the classical and quantum equivariant cohomology of Nakajima qui ver varieties for a general quiver Q. Using a géométrie R-matrix formalism, we construct a Hopf algebra Yq, the Yangian of Q, acting on the cohomology of these varieties, and show several results about their basic structure theory. We prove a formula for quantum multiplication by divisors in terms of this Yangian action. The quantum connection can be identified with the trigonométrie Casimir connection for Yq; equivalently, the divisor operators correspond to certain elements of Baxter subalgebras of Yq. A key rôle is played by géométrie shift
operators which can be identified with the quantum KZ difference connection.
In the second part, we give an extended example of the general theory for moduli spaces of sheaves on C2, framed at infinity. Here, the Yangian action is analyzed explicitly in terms of a free field realization; the corresponding R-matrix is closely related to the reflection operator in Liouville field theory. We show that divisor operators generate the quantum ring, which is identified with the full Baxter subalgebras. As a corollary of our construction, we obtain an action of the W-algebra (...) on the equivariant co-homology of rank r moduli spaces, which implies certain conjectures of Alday, Gaiotto, and Tachikawa.
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