The self-consistent procedure of solving both the Schrodinger and Poisson e
quations for electron and hole wave functions has been combined with the va
riational calculation of exciton states in strained GaN/AlxGa1-xN quantum w
ells. The procedure accounted properly for the free-carrier effects on the
excitonic wave function, namely, the exciton bleaching and the quantum excl
usion effects. It also allowed us to quantify the dependence of the exciton
energy and of the oscillator strength on the optical pumping density. The
calculation revealed an interesting interplay between the screening of the
polarization fields, which leads to the increase of the electron-hole overl
ap, and the screening of the electron-hole interaction, which affects the:
exciton Bohr radius. The peculiar nonmonotonic behavior of the exciton bind
ing energy as a function of the density of the electron-hole plasma results
from these combined effects.