How does Wonder Woman's magic golden lasso work?

Wonder Woman's magic golden lasso is a signature piece of equipment that compels anyone bound by it to tell the truth or obey her commands.1

The creation of this device is widely attributed to the character's creator, William Moulton Marston, who was a pioneer in lie detector research. Scholars frequently note a correlation between the function of the lasso and Marston’s early psychological experiments, which sought to detect deception by measuring physiological responses such as blood pressure.1