Inspired by the recent experiment of Hamsen et al. [ Phys. Rev. Lett. 118, 133604 (2017)], which demonstrated two-photon blockade in a driven nonlinear system (composed of a harmonic cavity with a driven atom), we show that two-photon blockade and other nonstandard types of photon blockade and photon-induced tunneling can be generated in a driven harmonic cavity without an atom or any other kind of nonlinearity, but instead coupled to a nonlinear (i.e., squeezed) reservoir. We also simulate these single- and two-photon effects with squeezed coherent states and displaced squeezed thermal states.

Two nonlinear Kerr oscillators mutually coupled by parametric pumping are studied as a source of states entangled in photon numbers. Temporal evolution of entanglement quantified by negativity shows the effects of sudden death and birth of entanglement. Entanglement is preserved even in asymptotic states under certain conditions. The role of reservoirs at finite temperature in entanglement evolution is elucidated. Relation between generation of entangled states and violation of Cauchy-Schwartz inequality for oscillator intensities is found.

We discuss a model comprised of a chain of three Kerr-like nonlinear oscillators pumped by two modes of external coherent field. We show that the system can be treated as nonlinear quantum scissors and behave as a three-qubit model. For such situation, different types of tripartite entangled states can be generated, even when damping effects are present in the system. Some amount of such entanglement can survive even in a long-time limit. The flow of bipartite entanglement between subsystems of the model and relations among first-order correlations, second-order correlations, and the entanglement are discussed.

We discuss a system comprising two nonlinear (Kerr-like) oscillators coupled mutually by a nonlinear interaction. The system is excited by an external coherent field that is resonant to the frequency of one of the oscillators. We show that the coupler evolution can be closed within a finite set of $n$-photon states, analogously as in the nonlinear quantum scissors model. Moreover, for this type of evolution our system can be treated as a Bell-like state generator. Thanks to the nonlinear nature of both oscillators and their internal coupling, these states can be generated even if the system exhibits its energy dissipating nature, contrary to systems with linear couplings.