Quote Originally Posted by markbarendt View Post
Compensation reduces contrast ...
... more in the highlights than in the low and mid-tones. And, if the compensating effect null-point, i.e., the point of exposure below which no compensation takes place is fairly high on the film's curve, you can effectively increase mid-tone contrast, reduce highlight contrast above that and thus "enhance" shadows and midtones. This, of course, in comparison to a negative developed without compensation and where the highlight points are matched.