We develop a theory of magnetoresistance based on variable-range hopping. An exponentially large, low-field and necessarily positive magnetoresistance effect is predicted in the presence of Hubbard interaction and spin-dynamics under certain conditions. The theory was developed with the recently discovered organic magnetoresistance in mind. To account for the experimental observation that the organic magnetoresistance effect can also be negative, we tentatively amend the theory with a mechanism of bipolaron formation.
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