A few years ago I published an op-ed with a right-wing Michigan think tank that got a small bit of attention (UPI story, interview) with this proposal: Have states use an ebay style auction to assign vanity plates, instead of ignoring the vast amounts that people are willing to spend to have the perfect plate. It's an even better idea now, what with the economic collapse stressing states very hard but also the prevalence of handheld phones/computers that would make it very easy for people to participate.

Imagine a state-owned website that daily lists a new set of auctions, all vanity plates set to expire within two weeks. With an RSS feed, people could be alerted to plates they are interested in bidding on. So the bidding goes for two weeks -- if the current person with the plate isn't the high bidder, they lose the plate and have to get new (regular) ones, or win another auction for a different vanity plate.

Lots of people wouldn't bid a dime for a vanity plate, and of course they don't have to. But there are a lot of plates that are just so perfect for certain businesses and individuals that you know the idea is a huge lost opportunity. States could set a minimum reserve price on all vanity plate combinations at the current, fixed price, and so they risk nothing from this.

John Gear
lovesalem.blogspot.com