I was under the impression that Chrome in Incognito Mode wouldn't accept or send cookies, since they could be used to identify you. When starting up Incognito Mode, I do have to re-log-in to gmail, etc. But the log-in stays active during the session.
So it seems to me that Incognito Mode maintains a separate, temporary store of cookies which get destroyed when you exit incognito mode. Does this mean that, if you browse in Incognito Mode all the time, it would have no benefit? Does Incognito Mode do anything else?
It essentially sets the cache path to a temporary folder. Cookies are still used, but everything starts "fresh" when the incognito window is launched. This applies all storage, including Cookies, Local Storage, Web SQL, IndexedDB, cache, etc.
Of course Chrome also leaves pages out of the browser's history.