Relative arithmetic

In nonstandard mathematics, the predicate ‘x is standard’ is fundamental. Recently, ‘relative’ or ‘stratified’ nonstandard theories have been developed in which this predicate is replaced with ‘x is y-standard’. Thus, objects are not (non)standard in an absolute sense, but (non)standard relative to other objects and there is a whole stratified universe of ‘levels’ or ‘degrees’ of standardness. Here, we study stratified nonstandard arithmetic and the related transfer principle. Using the latter, we obtain the ‘reduction theorem’ which states that arithmetical formulas can be reduced to equivalent bounded formulas. Surprisingly, the reduction theorem is also equivalent to the transfer principle. As applications, we obtain a truth definition for arithmetical sentences and we formalize Nelson’s notion of impredicativity.