Gain compression is a reduction in 'differential' or 'slope' gain caused by nonlinearity of the transfer function of the amplifying device. This nonlinearity may be caused by heat due to power dissipation, or by overdriving the active device beyond its linear region. It is a large signal phenomenon of circuits.
Read more about Gain Compression: Relevance, Audio Effects, Differences Between Clipping and Compression, Radio Frequency Compression, High Power Loudspeakers
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