This paper studies, both experimentally and theoretically, bi-excitons
in II-VI quantum wells with alloy disorder. Magneto-optics is used to
prove the bi-exciton nature of a photoluminescence feature emerging o
n the low-energy side of the groundstate exciton at moderate excitatio
n densities and To distinguish it from bound exciton transitions. On a
set of differently designed structures, we elaborate that the bi-exci
ton binding energy increases with growing two-dimensional confinement.
The fact that this energy is generally larger than the donor bound ex
citon binding energy represents unambiguous evidence that, similar lik
e for a single exciton, localization of the bi-exciton on alloy fluctu
ations takes place. This is also revealed by the formation and decay d
ynamics of the complex seen in time-resolved photoluminescence. We pre
sent calculations of the bi-exciton binding energy and other relevant
quantities beyond the virtual crystal approximation based on the densi
ty functional formalism. The results confirm the stability of a locali
zed bi-exciton state. Most of the localization energy stems from the l
ocalization of the two independent excitons while their interaction en
ergy is only slightly altered with respect to a situation with no allo
y disorder.