We study the collapse and revival of interference patterns in the momentum distribution of atoms in optical lattices, using a projection technique to properly account for the fixed total number of atoms in the system. We consider the common experimental situation in which weakly interacting bosons are loaded into a shallow lattice, which is suddenly made deep. The collapse and revival of peaks in the momentum distribution is then driven by interactions in a lattice with essentially no tunnelling. The projection technique allows to us to treat inhomogeneous (trapped) systems exactly in the case that non-interacting bosons are loaded into the system initially, and we use time-dependent density matrix renormalization group techniques to study the system in the case of finite tunnelling in the lattice and finite initial interactions. For systems of more than a few sites and particles, we find good agreement with results calculated via a naive approach, in which the state at each lattice site is described by a coherent state in the particle occupation number. However, for systems on the order of 10 lattice sites, we find experimentally measurable discrepancies to the results predicted by this standard approach.
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