This Third Edition of the 1985 report, "Dialogue for Change," discusses options and examples of educational choice and teacher empowerment and summarizes developments between 1985 and 1987. The following key options are discussed in Chapter 1, "Proposed Options for Change": (1) magnet schools; (2) open enrollment; (3) purchase of services; (4) competency based requirements; (5) two-tier administration; (6) site-managed schools; and (7) school building sharing. Other implications of the options and the concept of teacher as professional are also discussed. Each option includes a discussion of background issues and examples of the option in practice. Chapter 2 is called "Options for Change: Two Updates." The 1985-86 update discusses the following issues: (1) the need for educational change; (2) greater education choice for parents and students; (3) educational excellence and economic development; (4) teachers as professionals and entrepreneurs; and (5) competency testing for students. The 1987-88 update discusses the following topics: (1) general public interest in public school choice; (2) state and federal government responses; (3) new research on existing choice programs; and (4) the role of the private sector in promoting the concept. A list of 56 references, an executive summary of Chapter 1, and a six-item bibliography of Metropolitan Affairs Corporation publications are included. (FMW)