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Published online by Cambridge University Press: 12 March 2014
In this paper we introduce the notion of a set algebra satisfying a system E of equations. After defining a notion of freeness for such algebras, we show that, for any system E of equations, set algebras that are free in the class of structures satisfying E exist and are unique up to a bisimulation. Along the way, analogues of classical set-theoretic and algebraic properties are investigated.