A bisimulation for type abstraction and recursion

We present a bisimulation method for proving the contextual equivalence of packages in λ-calculus with full existential and recursive types. Unlike traditional logical relations (either semantic or syntactic), our development is “elementary, ” using only sets and relations and avoiding advanced machinery such as domain theory, admissibility, and ⊤⊤-closure. Unlike other bisimulations, ours is complete even for existential types. The key idea is to consider sets of relations—instead of just relations—as bisimulations