Second-order arithmetic has variables for natural numbers and for sets of natural numbers. Subsystems restrict comprehension and induction; arithmetical transfinite recursion theory is one important subsystem stronger than the first-order system Peano arithmetic.
Arithmetical transfinite recursion theory permits arithmetic recursive definitions along coded countable well-orders, together with the usual arithmetic comprehension background. Friedman's finite form of Kruskal's theorem is not provable in this theory.
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Second-order arithmetic is a foundational system in mathematical logic and set theory that extends first-order arithmetic by allowing quantification over sets of natural numbers, in addition to quantifying over individual natural numbers. In first-order arithmetic, the language contains symbols for natural numbers, addition, multiplication, and logical connectives, as well as quantification over individual natural numbers. A typical axiom system for first-order arithmetic is Peano Arithmetic (PA).