There's a private forum I frequent that had a really great write up on the history of Epiphone in the '60s. It addresses especially the consideration of pricing and will be invaluable to those that weren't around or don't remember Gibson US-made Epiphones. I thought it was very well written and I wish I could just post a link to it. Failing that, here's the post:
"That's why there WAS an Epiphone brand, so the parent company CMI could sell guitars to a second dealer when there was already a Gibson dealer in that territory. If a Gibson dealer had a territory, CMI could not sell Gibsons to another store within it. But they could sell Epiphones to the store next door without violating the letter of the agreement.
Originally, CMI bought Epiphone in a sort of salvage sale, to gain access to its machines and parts for making basses. They soon realized that the brand name itself was valuable, because it gave the a way to get more sales in existing, protected territories by offering a line up that closely mirrored Gibson's to dealers that othwerwise had Gibson unavailable to them.
Kalamazoo-made Epiphones were never less expensive, second class citizens. In the '60s they were the equivalent of Gibsons in both in price and quality and made in the same facilities, though there were minor price variances that reflected special features and ornamentation, as you'd expect. Some Epiphones were MORE EXPENSIVE than Gibsons, like the Excellente acoustic that has been recently reissued. Epiphone became a budget brand when manufacturing was outsourced to various offshore makers on the '70s to combat the rise of low-cost import brands."