To get back to one of your original posts, though, you said that you'd have to have a really weird cash flow to justify reswitching. And yet, it isn't all that hard, is it, to imagine a project that will have three different internal rates of return, between which NPV could be positive or negative. Doesn't this suggest that reswitching would be a whole lot more "realistic" than a smooth downward sloping demand curve and a single equilibrium price for capital?
Christian