Quiver varieties and fusion products for sl₂

We construct the fusion product of finite-dimensional sl_2-modules in the homology of (or in the space of constructible functions on) a certain subvariety L_l(w_1, ..., w_r) of Nakajima's tensor product variety L(w_1,..., w_r). We also give a combinatorial description of the irreducible components of this subvariety using the notions of graphical calculus and crossingless matches for sl_2.