  We have studied the electronic structure and charge ordering (Verwey)
transition of magnetite (Fe3O4) by soft x-ray photoemission. Due to the
enhanced probing depth and the use of different surface preparations we are
able to distinguish surface and volume effects in the spectra. The pseudogap
behavior of the intrinsic spectra and its temperature dependence give evidence
for the existence of strongly bound small polarons consistent with both dc and
optical conductivity. Together with other recent structural and theoretical
results our findings support a picture in which the Verwey transition contains
elements of a cooperative Jahn-Teller effect, stabilized by local Coulomb
interaction.
