Auctioning names

There used to be a time when subway maps were neat and compact,roughly the size of a credit card. That may be about to change. For the last five years,the New York Metropolitan Transit Authority has been trying to sell naming rights to its subway stations; it has finally lured in a buyer. The British bank Barclays,in return for a mere four million dollars,has ensured that passengers passing by the second-busiest station in Brooklyn will hear an awkwardly long name Atlantic Avenue-Pacific Street-Barclays Centre Subway Station each time their coach pulls in.

Naturally there is a catch. Barclays is to open the Barclays Centre in Brooklyn in 2012 which is a part of a larger infrastructure project. Advertising experts believe that such sort of subliminal messaging is likely to have a positive monetary effect on the new venture. However,the MTA benefits too. Currently,it faces a 200 million budget gap and has consequently hiked up train fares. Should the Barclays example be successful,other players are soon to follow,thereby greatly increasing the revenue generated by the MTA.

Such innovative ventures are not uncommon elsewhere. The Congestion Charge applied on all vehicles in Central London was initially met with scepticism. However,since its imposition,work has started on the rusty 146-year-old Metropolitan tube line. The law regulating the congestion charge dictates that all revenue raised should be pumped back into the public transport system. Similarly,the trams in Amsterdam have undergone a radical makeover due to falling profits in the late 90s. In order to lure more commuters,the trams have teamed up with a popular fast food franchise that has attracted commuters. Call these market solutions for public utilities.