System performance is determined for an optical communication system using noncoherent detection in the presence of tracking error induced signal fading assuming 1) binary on-off modulation (OOK) with both fixed and adaptive threshold receivers, and 2) binary polarization modulation (BPM). BPM is shown to maintain its inherent 2-3 dB advantage over OOK when adaptive thresholding is used, and to have a substantially greater advantage when the OOK system is restricted to a fixed decision threshold.
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Tycz et al. (1973) studied this question.
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