I was wondering (and could not seem to prove or disprove) if epsilon-induction could be derived from the transitive closure operator for binary relations, if we do not have the Foundation Axiom.
The induction of the transitive closure operator is of the form: If $R(x,y)\subseteq P(x,y)$ and P is a transitive relation, then $R^{+}(x,y)\subseteq P(x,y)$.
I have a hunch that this rule is strong enough to prove epsilon-induction even if we do not assume Foundation, but I may be wrong of course.(It is enought to prove the induction on N by itself). Perhaps some other weaker assumption is needed. I'd appreciate your help on this topic.