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Oakley, Inc. is an American company headquartered in Foothill Ranch, California, which is an autonomous subsidiary of Luxottica.The company designs, develops and manufactures sports performance equipment and lifestyle pieces including sunglasses, safety glasses, eyeglasses, sports visors, ski/snowboard goggles, watches, apparel, backpacks, shoes, optical frames, and other accessories.
The economist Alex Tabarrok has argued, that the success of this promotion lies in the fact that consumers value the first unit significantly more than the second one. So compared to a seemingly equivalent "Half price off" promotion, they may only buy one item at half price, because the value they attach to the second unit is lower than even the discounted price.
By 1938, Life magazine wrote of how sunglasses were a "new fad for wear on city streets ... a favorite affectation of thousands of women all over the U.S." It stated that 20 million sunglasses were sold in the United States in 1937 but estimated that only about 25% of American wearers needed them to protect their eyes. [2]
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Oakley had tried to dispute their prices because of Luxottica's large marketshare, and Luxottica responded by dropping Oakley from their stores, causing their stock price to drop, followed by Luxottica's hostile take over of the company. [24] In August 2011, Luxottica acquired Erroca for €20 million. [25]
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