Estimating the resolution limit of the map equation in community detection

A community detection algorithm is considered to have a resolution limit if the scale of the smallest modules that can be resolved depends on the size of the analyzed subnetwork. The resolution limit is known to prevent some community detection algorithms from accurately identifying the modular structure of a network. In fact, any global objective function for measuring the quality of a two-level assignment of nodes into modules must have some sort of resolution limit or an external resolution parameter. However, it is yet unknown how the resolution limit affects the so-called map equation, which is known to be an efficient objective function for community detection. We derive an analytical estimate and conclude that the resolution limit of the map equation is set by the total number of links between modules instead of the total number of links in the full network as for modularity. This mechanism makes the resolution limit much less restrictive for the map equation than for modularity, and in practice orders of magnitudes smaller. Furthermore, we argue that the effect of the resolution limit often results from shoehorning multi-level modular structures into two-level descriptions. As we show, the hierarchical map equation effectively eliminates the resolution limit for networks with nested multi-level modular structures.Comment: 12 pages, 7 figure

Stock portfolio structure of individual investors infers future trading behavior

Although the understanding of and motivation behind individual trading behavior is an important puzzle in finance, little is known about the connection between an investor's portfolio structure and her trading behavior in practice. In this paper, we investigate the relation between what stocks investors hold, and what stocks they buy, and show that investors with similar portfolio structures to a great extent trade in a similar way. With data from the central register of shareholdings in Sweden, we model the market in a similarity network, by considering investors as nodes, connected with links representing portfolio similarity. From the network, we find groups of investors that not only identify different investment strategies, but also represent groups of individual investors trading in a similar way. These findings suggest that the stock portfolios of investors hold meaningful information, which could be used to earn a better understanding of stock market dynamics.Comment: 9 pages, 4 figures, 1 tabl

Modeling sequences and temporal networks with dynamic community structures

In evolving complex systems such as air traffic and social organizations, collective effects emerge from their many components' dynamic interactions. While the dynamic interactions can be represented by temporal networks with nodes and links that change over time, they remain highly complex. It is therefore often necessary to use methods that extract the temporal networks' large-scale dynamic community structure. However, such methods are subject to overfitting or suffer from effects of arbitrary, a priori imposed timescales, which should instead be extracted from data. Here we simultaneously address both problems and develop a principled data-driven method that determines relevant timescales and identifies patterns of dynamics that take place on networks as well as shape the networks themselves. We base our method on an arbitrary-order Markov chain model with community structure, and develop a nonparametric Bayesian inference framework that identifies the simplest such model that can explain temporal interaction data.Comment: 15 Pages, 6 figures, 2 table

Understanding Complex Systems: From Networks to Optimal Higher-Order Models

To better understand the structure and function of complex systems, researchers often represent direct interactions between components in complex systems with networks, assuming that indirect influence between distant components can be modelled by paths. Such network models assume that actual paths are memoryless. That is, the way a path continues as it passes through a node does not depend on where it came from. Recent studies of data on actual paths in complex systems question this assumption and instead indicate that memory in paths does have considerable impact on central methods in network science. A growing research community working with so-called higher-order network models addresses this issue, seeking to take advantage of information that conventional network representations disregard. Here we summarise the progress in this area and outline remaining challenges calling for more research.Comment: 8 pages, 4 figure

An information-theoretic framework for resolving community structure in complex networks

To understand the structure of a large-scale biological, social, or technological network, it can be helpful to decompose the network into smaller subunits or modules. In this article, we develop an information-theoretic foundation for the concept of modularity in networks. We identify the modules of which the network is composed by finding an optimal compression of its topology, capitalizing on regularities in its structure. We explain the advantages of this approach and illustrate them by partitioning a number of real-world and model networks.Comment: 5 pages, 4 figure

Constrained information flows in temporal networks reveal intermittent communities

Many real-world networks represent dynamic systems with interactions that change over time, often in uncoordinated ways and at irregular intervals. For example, university students connect in intermittent groups that repeatedly form and dissolve based on multiple factors, including their lectures, interests, and friends. Such dynamic systems can be represented as multilayer networks where each layer represents a snapshot of the temporal network. In this representation, it is crucial that the links between layers accurately capture real dependencies between those layers. Often, however, these dependencies are unknown. Therefore, current methods connect layers based on simplistic assumptions that do not capture node-level layer dependencies. For example, connecting every node to itself in other layers with the same weight can wipe out dependencies between intermittent groups, making it difficult or even impossible to identify them. In this paper, we present a principled approach to estimating node-level layer dependencies based on the network structure within each layer. We implement our node-level coupling method in the community detection framework Infomap and demonstrate its performance compared to current methods on synthetic and real temporal networks. We show that our approach more effectively constrains information inside multilayer communities so that Infomap can better recover planted groups in multilayer benchmark networks that represent multiple modes with different groups and better identify intermittent communities in real temporal contact networks. These results suggest that node-level layer coupling can improve the modeling of information spreading in temporal networks and better capture intermittent community structure.Comment: 10 pages, 10 figures, published in PR

Robustness of journal rankings by network flows with different amounts of memory

As the number of scientific journals has multiplied, journal rankings have become increasingly important for scientific decisions. From submissions and subscriptions to grants and hirings, researchers, policy makers, and funding agencies make important decisions with influence from journal rankings such as the ISI journal impact factor. Typically, the rankings are derived from the citation network between a selection of journals and unavoidably depend on this selection. However, little is known about how robust rankings are to the selection of included journals. Here we compare the robustness of three journal rankings based on network flows induced on citation networks. They model pathways of researchers navigating scholarly literature, stepping between journals and remembering their previous steps to different degree: zero-step memory as impact factor, one-step memory as Eigenfactor, and two-step memory, corresponding to zero-, first-, and second-order Markov models of citation flow between journals. We conclude that higher-order Markov models perform better and are more robust to the selection of journals. Whereas our analysis indicates that higher-order models perform better, the performance gain for the second-order Markov model comes at the cost of requiring more citation data over a longer time period.Comment: 9 pages, 5 figure