A theoretical analysis of Pancharatnam and Berry phases is made for biphoton three-level systems, which are produced via frequency degenerate co-linear spontaneous parametric down conversion (SPDC). The general theory of Pancharatnam phases is discussed with a special emphasis on geodesic 'curves'in Hilbert space. Explicit expressions for Pancharatnam, dynamical and geometrical phases are derived for the transformations produced by linear phase-converters. The problem of gauge invariance is treated along all the article.
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