HOW they work is beyond my cavemanesque understanding of electronics. I'm essentially the Cole Trickle of slot cars! It's just a 3-position toggle switch, and you can definitely feel the difference in response. I assume it's hooked to a potentiometer of some type. I know Rich has talked about building one with variable resistance but I don't think he liked it much. I got these from NJ Nostalgia Hobby. He has a 120 ohm controller that DS makes just for them, but don't know if DS does these for him in house or if he modifies himself. Two versions, one that's 35/45/55 ohm and one that's 60/90/120. Have so far been able to get a feel I liked with all of the cars.