Originally Posted by ChrisSlicks

Empirical testing. It cuts power in the case of oversteer but I've also found that in some cases it will pulse the brakes. I believe it will only pulse the brakes when your foot is on the brake pedal. You can be going all kinds of sideways, hit the brakes and the car will straighten itself out, even with VDC turned off. So while not quite the yaw control of other systems, it does take the current yaw into consideration when braking and can pulse each wheel individually.