Quantum theory of optical bistability. II. Atomic fluorescence in a high-$Q$ cavity

A quantum treatment of a coherently driven cavity with a medium of two-level atoms is given. The system displays both absorptive and dispersive bistability. Quantum fluctuations are included via a Fokker-Planck equation in a generalized $P$ representation, after adiabatic elimination of the atomic variables. The transmitted spectrum and correlation function is calculated in a linearized (Gaussian) approximation. In the limit of large detuning and radiative damping, the quantum fluctuations are identical to those of a simple nonlinear polarizability theory. An analysis is given of the nonclassical statistical properties of the intensity-correlation spectrum.