noah, originally analog mixers had no compensation.
everything was ok as long as the music was played back in stereo.
in mono, however the centre signal would increase by 3db and the sides would decrease by -3db. this is called "centre channel build up".
this is why the mono - stereo switch on mixers is important.
(i constantly check the mix between mono/stereo at mixdown.)
this compatibility is still important today. (am radio, fm radio, clock radios etc.)
the way around this is to artificially increase the sides (+3) and dip the middle (-3) of the mixers panpots.
in the daw world as in the analog one, this is for monitoring only.
it's an illusion. and a useful one.
it only effects wot goes to tape/HDD because the pan law is forcing you to compensate when you mix with it on. really, it just saves time checking the mix in mono.
to prove my point, download the demo of elemental audios excellent XL meter plugs.
one of these clearly shows the difference between mid and side signals.
ergo: more side = wider stereo. more mid = narrower image leading to mono.
note: you cannot naturally increase the side signal as this leads to antiphase components which will virtually make the music have no center at all. great for the occasional sfx. hendrix used antiphase on EL a lot to good effect for eg.
there is a lot of mumbo jumbo and misinfo re: this topic.
it is not voodoo, merely slight of hand.
since the early 70s i have always checked mixes in mono, pan-law or no.
footnote: if you think this is confusing, try collapsing a 5.1 mix back to stereo, then mono.........