The magnitude of the optical nonlinearity and its phase coherence are investigated at low temperatures in single crystals of CdSe and CdSe,S1using picosecond time resolved degenerate fourwave mixing. In the pure compoupd semiconductors, the optical nonlinearity as well as the dephasing is governed by free exciton and biexeiton interactions. I n the mixed crystals, excitons localized by the alloy disorder play the dominant role, giving rise to larger nonlinearities and longer dephasing times than in the pure compounds.
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