In this paper, we realize the Okada algebra and its associated monoid
using a labeled version of Temperley-Lieb arc-diagrams.
We prove in full generality that the dimension of
the Okada algebra is n!. In particular, we interpret a natural bijection
between permutations and labeled arc-diagrams as an instance of
Fomin's Robinson-Schensted correspondence for the Young-Fibonacci
lattice. We prove that the Okada monoid is aperiodic and describe its Green
relations. Lifting those results to the algebra allows us to construct a cellular
basis of the Okada algebra.
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