All the possible combinations of waveform and number of rails have been used. Here are some examples:
2-rail DC--Most HO, N, Z, some American Flyer
2-rail AC--American Flyer after WWII
3-rail DC--Lionel
3-rail AC--Lionel, Maerklin HO
Bob Nelson
Besides the wheels being insulated for two rail track(a three rail wheel set will short out any two rail track), I think the power source is DC voltage. So you would do a lot better by using two rail O scale on two rail track and three rail O gauge on three rail track.
Although 2 rail and 3 rail '0' gauge share the same scale and track gauge, the similarities end there. Two rail '0' gauge trains have insulated trucks and wheelsets similar to other 2 rail trains (G,S, HO,N,Z). They can be adapted to run on 3 rail track with some rewiring, and the addition of a center pickup roller for power.
Running 3 rail trains on 2 rail track would probably require a complete swap out of all the trucks and wheelsets, and replaced with those designed for 2 rail use.
The outside third rail that Bob Nelson is referring to is the third rail outside the running rails where power is picked up by a sliding shoe attached to the outside frame of the trucks, like that used in subway and commuter trains.
Larry
There is a loss of all electrical power, because Lionel and other 3-rail trains generally have solid metal axles that connect the running rails together. Early scale modelers did use some Lionel models that were built to scale, but with an outside third rail to complete the circuit. Lionel sold kits, for example, to adapt even models of steam locomotives, like the NYC Hudsons, to outside third rail.
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