The performance of phase-sensing interferometers employing squeezed states and homodyne detection is analyzed and compared to the performance of systems employing direct detection. Standard differenced direct-detection Michelson and Mach-Zehnder interferometers are shown to be suboptimal in the sense that an observation/measurement-noise coupling occurs, which can degrade performance. Homodyne-detection interferometers in which the phase shift in one arm is the conjugate of that in the other arm do not suffer from the preceding drawback. Overall, however, the performance of differenced direct-detection and homodyne-detection interferometers is similar in single-frequency operation. In particular, both detection schemes reach the standard quantum limit on position-measurement sensitivity in single-frequency interferometric gravity-wave detectors at roughly the same average photon number. This limit arises from back action in the form of radiation pressure fluctuations entering through the energy-phase uncertainty principle. Multifrequency devices can circumvent this uncertainty principle, as illustrated by the conceptual design given for a two-frequency interferometer which can greatly surpass the standard quantum limit on position sensing. This configuration assumes that ideal photodetectors respond to photon flux rather than energy flux.
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