Has this ever been done? Come up with some kind of prize for the winner? Have other hosts judge their work?
Have the listeners judge their work.
Not that I know of. Believe it or not, I was thinking about how I'd do this today (I was sitting in a boring class daydreaming).
I think you would have to give them some homework to do, to increase the chance of putting together a listenable show. Maybe a short video from Bulldog on how to do show prep. Give them some pointers on how to move the show along, let them pick their bumper music, samples of segues into news and weather, let them line up guests, etc.
Then give them 15 minutes. If they stink, Gong them or maybe the producer can blow them up. It they aren't boring people to death, you can let them continue. Even if they get gonged, let them come back at another time to try again (practice makes perfect), unless they completely stink. This might have the potential to be amusing.
On the Columbus board, I brought up the subject of the old Militia/Conspiracy Theory shows that used to run from the Sun Network. That may be too off the wall for 1160, but I bet you could line up some real characters if you wanted. With the station being owned by a company called "Christian Broadcasting" I'm guessing you wouldn't want things too off-color, but you can still do entertaining stuff without being crude.
BTW, dial position also makes a difference. I bid on a 1000 watt station at 540. I owned a 1000 watt station at 600. You can cover a lot with a kilo watt.... Rhymes too.
True. AM 660 in Waverly goes out a pretty long distance.