Nuclear and Coulomb collisions in GRB jets create a hot e ^ { \pm } plasma . This collisional heating starts when the jet is still opaque and extends to the transparent region . The e ^ { \pm } plasma radiates its energy . As a result , a large fraction of the jet energy is converted to escaping radiation with a well-defined spectrum . The process is simulated in detail using the known rates of collisions and accurate calculations of radiative transfer in the expanding jet . The result reproduces the spectra of observed GRBs that typically peak near 1 MeV and extend to much higher energies with a photon index \beta \sim - 2.5 . This suggests that collisional heating may be the main mechanism for GRB emission .