Physically, the generalized Wannier equation describes how the presence of other electron–hole pairs modifies the binding of one effective pair. As main consequences, an excitation tends to weaken the Coulomb interaction and renormalize the single-particle energies in the simplest form. Once also correlation effects are included, one additionally observes the screening of the Coulomb interaction, excitation-induced dephasing, and excitation-induced energy shifts. All these aspects are important when semiconductor experiments are explained in detail.