The density matrix approach has been employed to understand the mechanism o
f nonlinear absorption / gain in a single semiconductor quantum dot as well
as in an inhomogeneous distribution of quantum dots. The analytical result
s show an enhancement of excitonic gain in the presence of biexcitons. The
same has been confirmed by the numerical analysis carried out for a realist
ic system of semiconductor quantum dots of CdS embedded in a glass matrix.
The numerical study exhibits a red shift of maximum gain at large distribut
ion widths. (C) 2001 Elsevier Science Ltd. All rights reserved.