This report on progress explores recent advances in our theoretical and experimental understanding of the physics of open quantum systems (OQSs). The study of such systems represents a core problem in modern physics that has evolved to assume an unprecedented interdisciplinary character. OQSs consist of some localized, microscopic, region that is coupled to an external environment by means of an appropriate interaction. Examples of such systems may be found in numerous areas of physics, including atomic and nuclear physics, photonics, biophysics, and mesoscopic physics. It is the latter area that provides the main focus of this review, an emphasis that is driven by the capacity that exists to subject mesoscopic devices to unprecedented control. We thus provide a detailed discussion of the behavior of mesoscopic devices (and other OQSs) in terms of the projection-operator formalism, according to which the system under study is considered to be comprised of a localized region (Q), embedded into a well-defined environment (P) of scattering wavefunctions (with Q + P = 1). The Q subspace must be treated using the concepts of non-Hermitian physics, and of particular interest here is: the capacity of the environment to mediate a coupling between the different states of Q; the role played by the presence of exceptional points (EPs) in the spectra of OQSs; the influence of EPs on the rigidity of the wavefunction phases, and; the ability of EPs to initiate a dynamical phase transition (DPT). EPs are singular points in the continuum, at which two resonance states coalesce, that is where they exhibit a non-avoided crossing. DPTs occur when the quantum dynamics of the open system causes transitions between non-analytically connected states, as a function of some external control parameter. Much like conventional phase transitions, the behavior of the system on one side of the DPT does not serve as a reliable indicator of that on the other. In addition to discussing experiments on mesoscopic quantum point contacts that provide evidence of the environmentally-mediated coupling of quantum states, we also review manifestations of DPTs in mesoscopic devices and other systems. These experiments include observations of resonance-trapping behavior in microwave cavities and open quantum dots, phase lapses in tunneling through single-electron transistors, and spin swapping in atomic ensembles. Other possible manifestations of this phenomenon are presented, including various superradiant phenomena in low-dimensional semiconductors. From these discussions a generic picture of OQSs emerges in which the environmentally-mediated coupling between different quantum states plays a critical role in governing the system behavior. The ability to control or manipulate this interaction may even lead to new applications in photonics and electronics.
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