To examine the success of the Federal Communications Commission's (FCC) 1982 decision not to select a standard transmission system for AM stereophonic broadcasting (instead leaving it to the marketplace), this paper documents and analyzes the first 7 years of the AM stereo marketplace. Following an explanatory introduction, the paper's first section examines the process leading up to the landmark 1982 decision. The second section examines in detail events in the AM stereo marketplace from 1982-1988. The third section is a summary of the complicated maneuvers of the companies involved, and the fourth section draws conclusions. Ninety-six references conclude the paper. (SR)