I think prize economics is really interesting... though practically speaking, there's probably a limited class of problems that could be better solved by using prizes. (I think "the auto industry" will do just fine without any kind of prize.)

Check out these articles:

"The Bogus $1 Million Meat Prize" http://www.slate.com/id/2189693/

"Should the government start handing out prizes for science breakthroughs?"

http://www.slate.com/id/2182663/pagenum/2