Using the close relationship between coactions of discrete groups and Fell bundles, we introduce a rocedure for inducing a C*-coaction δ: D → D ⊗ C* (G/N) of a quotient group G/N of a discrete group G to a C*-coaction Ind δ: Ind D → Ind D ⊗ C* (G) of G. We show that induced coactions behave in many respects similarly to induced actions. In particular, as an analogue of the well known imprimitivity theorem for induced actions we prove that the crossed products Ind D ×Ind δ G and D ×δ G/N are always Morita equivalent. We also obtain nonabelian analogues of a theorem of Diesen and Pedersen which show that there is a duality between induced coactions and twisted actions in the sense of Green. We further investigate amenability of Fell bundles corresponding to induced coactions.
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