Jonathan Schaffer in his famous “Monism: The Priority of the Whole” paper assumes that priority relations are well-founded. The standard definition of well-foundedness in this context would say that every non-empty set has an element that has nothing prior to it in that set.
Imagine a world w with a continuously subdivided entity E made of pointlike simples (like a real line is made of points in standard mathematical constructions) that lies between the 0 and 1 coordinates on the x-axis, and suppose that for any real number a strictly between 0 and 1 there is the part Ea of E that is composed of all the simples with x-coordinate less than a. Assume further that either proper parts are always prior to wholes or wholes are always prior to proper parts.
In either case, we don’t have well-foundedness. For let C be the chain consisting of all the objects Ea for 0 < a < 1. Since Ea is a proper part of Eb if and only if a < b, C does not have a minimal element on either of the two priority relations (the part-before-whole and the whole-before-part one).
Schaffer’s justification for assuming well-foundedness is that without it, we could have a world with no basic entities. But notice that although w violates well-foundedness, it could still have basic entities. For it could be an atomic world—E itself is made of pointlike simples—in the case of the part-to-whole priority relation and it could be a priority monist world.
Perhaps Schaffer is misusing the term “well-founded”. He glosses it as “all priority chains terminate”. This is ambiguous between two readings. On a stronger reading, any priority chain terminates inside itself: there is an item in the chain that is prior to all the other items in the chain. Assuming the Axiom of Choice, Zorn’s Lemma shows that this stronger reading is equivalent to the standard definition of well-foundedness. But on the weaker reading, the idea would be that for any priority chain C, there is an entity that is prior to all the entities in C other than perhaps itself, but without the entity being required to be itself in the chain. This is equivalent to the priority ordering being the reverse of an inductive order.
On the weaker reading, assuming the Axiom of Choice, each non-basic item has something basic prior to it. This seems to me to be what Schaffer needs for his arguments.
That said, I think there is something to be said for the standard sense of “well-founded”, even if it is incompatible with the above world with the continuously subdivided entity E and whole-to-part or part-to-whole priority. Indeed, I am now thinking that well-foundedness is a really nice condition, but assuming there are continuously subdivided entities it does rule out both kinds of priority relations. But that should be fine. And in fact Schaffer could embrace the denial of whole-to-part and part-to-whole priority. In that paper, he only commits himself to integrated wholes being prior to their parts.