Abstract
We extend the usual world-volume action for a Dp-brane to the case of N coincident Dp-branes where the world-volume theory involves a U(N) gauge theory. The guiding principle in our construction is that the action should be consistent with the familiar rules of T-duality. The resulting action involves a variety of potential terms, i.e. nonderivative interactions, for the nonabelian scalar fields. This action also shows that Dp-branes naturally couple to RR potentials of all form degrees, including both larger and smaller than p+1. We consider the dynamics resulting from this action for Dp-branes moving in nontrivial background fields, and illustrate how the Dp-branes are ``polarized'' by external fields. In a simple example, we show that a system of D0-branes in an external RR four-form field expands into a noncommutative two-sphere, which is interpreted as the formation of a spherical D2-D0 bound state.