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Measurement-induced nonclassical effects in a two-mode interferometer areinvestigated theoretically using numerical simulations and analytical results.We demonstrate that for certain parameters measurements within theinterferometer lead to the occurrence of two-mode squeezing. The resultsstrongly depend on the detection probability, the phase inside theinterferometer, and the choice of the input states. The appropriate parametersfor maximized squeezing are obtained. We analyze the influence of losses andconfirm that the predicted effects are within reach of current experimentaltechniques.

Generating two-mode squeezing with multimode measurement-induced nonlinearity