Use the convention that the transitive closure of is the least transitive set containing as a subset. Define and . For each natural number , a finite sequence of length with these properties exists by induction, and is unique because each next entry is the uniquely determined union of the previous entry. Thus the relation sending to its last entry is a definable function-class, not just a putative recursive specification. The Axiom schema of replacement applied to gives the set of all . The Axiom of union then gives
If and , then , so this set is transitive. It contains , and any transitive set containing contains all by induction; hence it is least. The convention requiring itself as an element instead uses .
The Axiom of foundation says every nonempty set has an element with . Epsilon induction says that for every formula ,
To derive induction from Foundation, if fails, form by axiom schema of separation the nonempty set of counterexamples in . A Foundation-minimal counterexample has every member satisfying , by transitivity, contradicting the inductive hypothesis. Conversely, if a nonempty set has no Foundation-minimal member, every has a member in . The formula is then progressive: if all members of are outside , must also be outside . Epsilon induction makes empty, a contradiction. Thus the two principles are equivalent given the other axioms.
The epsilon-recursion theorem states that for a definable class operation assigning a unique set to each set-indexed function, there is a unique definable function-class such that for every set . A version with explicit in the argument is equivalent. Foundation gives well-foundedness and Replacement makes each restriction set-sized. Its ordinal restriction gives transfinite recursion and constructs the printed .
Here “countable” means at most countable, including finite sets and the empty set. By transfinite induction each is transitive, each of its elements is countable, and . At a successor this follows because a member of is a countable subset of ; at a limit use the increasing union. Let be the first uncountable ordinal. Every countable subset of lies in some with , since countably many countable ordinal bounds have a countable supremum. It therefore belongs to . Consequently
There is no earlier stabilization: for every countable ordinal , induction gives , so , while excludes by its rank. Thus is the first such stage. The fixed set is the set of hereditarily countable sets.
The epsilon-recursion theorem says that for every definable operation assigning a set to each set and each function with domain , there is a unique class function such that
for every set .
For uniqueness, suppose and both satisfy the recursion. If they agree on every , then their restrictions to agree and hence
The epsilon induction principle therefore gives .
For existence, call a function coherent on a transitive set when
The same epsilon-induction argument shows that any two coherent functions agree on the intersection of their transitive domains. Assuming coherent functions have been constructed below every member of , their compatible union defines all values below ; adjoining the value prescribed by extends the construction to . Epsilon induction establishes this construction for every . The compatible local functions therefore unite to the required class function .
A relation on is well-founded when every nonempty subset of has an element with no -predecessor in that subset. It is extensional when
The Mostowski collapse theorem states that every well-founded extensional relation is isomorphic to membership on a unique transitive set . Define recursively
Well-founded recursion makes well defined. Epsilon-style induction along , together with extensionality, shows that is injective. By definition,
so is an isomorphism from onto , where . If , then for some , so ; hence is transitive. If another collapse has transitive range, induction gives , proving uniqueness.
Finally, suppose is finite. Its collapse is a finite transitive set, so every member of is hereditarily finite. Therefore every well-founded extensional relation on collapses to a transitive subset of .
Conversely, let be infinite. Choose the initial infinite ordinal equinumerous with . The successor ordinal has the same cardinality as . Pulling its membership relation back along a bijection gives a well-founded extensional relation on whose collapse is . But is not hereditarily finite, so . Consequently,