A Latent Space Approach to Inferring Distance‐Dependent Reciprocity in Directed Networks

ABSTRACT Reciprocity, or the stochastic tendency for actors to form mutual relationships, is an essential characteristic of directed network data. Existing latent space approaches to modelling directed networks are severely limited by the assumption that reciprocity is homogeneous across the network. In this work, we introduce a new latent space model for directed networks that can model heterogeneous reciprocity patterns that arise from the actors' latent distances. Furthermore, existing conditionally edge‐independent latent space models are nested within the proposed model class, which allows for meaningful model comparisons. We introduce a Bayesian inference procedure to infer the model parameters using Hamiltonian Monte Carlo. Lastly, we use the proposed method to infer different reciprocity patterns in an advice network among lawyers, an information‐sharing network between employees at a manufacturing company and a friendship network between high school students.