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Motivated by the representation theory of quivers with potentials introduced by Derksen, Weyman and Zelevinsky and by work of Caldero and Chapoton, who gave explicit formulae for the cluster variables of Dynkin quivers, we associate a Caldero-Chapoton algebra to any (possibly infinite dimensional) basic algebra. By definition, the Caldero-Chapoton algebra is (as a vector space) generated by the Caldero-Chapoton functions of the decorated representations of the basic algebra. The Caldero-Chapoton algebra associated to the Jacobian algebra of a quiver with potential is closely related to the cluster algebra and the upper cluster algebra of the quiver. The set of generic Caldero-Chapoton functions, which conjecturally forms a basis of the Caldero-Chapoton algebra) is parametrized by the strongly reduced components of the varieties of representations of the Jacobian algebra and was introduced by Geiss, Leclerc and Schröer. Plamondon parametrized the strongly reduced components for finite-dimensional basic algebras. We generalize this to arbitrary basic algebras. Furthermore, we prove a decomposition theorem for strongly reduced components. Thanks to the decomposition theorem, all gener
preprint / 2013