The Huckel model fails to describe optical absorption in PPV and its d
erivatives, and explicit inclusion of moderate electron-electron inter
actions is essential for a proper theoretical description. The lowest
optical state is an exciton with a binding energy estimated as 0.90 +/
- 0.15 eV, in excellent agreement with experiment. Such a large excito
n binding energy strongly suggests stable biexcitons. The concept of b
iexcitons in pi-conjugated polymers is introduced, and picosecond phot
oinduced absorption is explained as excited state absorption from the
exciton to the biexciton.