We develop a many-body approach to the behavior of exciton bound states and the conduction electron band edge in a surrounding electron-hole plasma with a focus on the absorption spectrum of Rydberg excitons in cuprous oxide. The interplay of band edge and exciton levels is analyzed numerically, whereby the self-consistent solution is compared to the semiclassical Debye approximation. Our results provide criteria which allow to verify or rule out the different band edge models against future experimental data.
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