Abstract
We predict the effect on the intracavity quadrature-phase-amplitude probability distribution of coupling the signal mode of a degenerate parametric oscillator to a squeezed bath. Solutions in a transient regime reveal interference fringes which are indicative of the formation of a ‘‘Schrödinger cat’’ state. The use of the squeezed reservoir allows fringes to be predicted for smaller nonlinearity-to-loss ratios.