Abstract
We prove that the iterative construction of initial algebras converges for endofunctors F of many-sorted sets whenever F has an initial algebra. In the case of one-sorted sets, the convergence takes n steps where n is either an infinite regular cardinal or is at most 3.
Dually, the existence of a many-sorted terminal coalgebra implies that the iterative construction of a terminal coalgebra converges. Moreover, every endofunctor with a fixed-point pair larger than the number of sorts is proved to have a terminal coalgebra.
As demonstrated by James Worell, the number of steps here need not be a cardinal even in the case of a single sort: it is omega + omega for the finite power-set functor. The above results do not hold for related categories, such as graphs: we present non-constructive initial algebras and terminal coalgebras.