Because of lower maximum temperature due to dissociation the maximum pressure is also reduced and state after combustion will be replaced by 3’ instead of 3.
In absence of reassociation due to fall of temperature during expansion process, the expansion process would be represented by 3’-4’’. But due to reassociation the expansion follows path 3’-4’.
Comparing with ideal expansion 3-4 it can be observed that effect of dissociation is to lower temperature and consequently pressure at beginning of expansion stroke. Thus leading to loss of efficiency and power.