A theoretical study of dislocations in intercalation compounds reveals that the local deformation of the host near an intercalant island exhibits damped spatial oscillations, resulting in strong interference effects in the elastic energy of Daumas-H\'erold domain walls. Explicit calculations for stage 2 predict that a large energy barrier must be overcome before two domains with matching intercalant layers can merge, while staggered domains should bind to each other. Experimental implications are discussed.
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George Kirczenow (1982) studied this question.
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