Geometric Model Selection for Latent Space Network Models: Hypothesis Testing via Multidimensional Scaling and Resampling Techniques

Latent space models assume that network ties are more likely between nodes that are closer together in an underlying latent space. Euclidean space is a popular choice for the underlying geometry, but hyperbolic geometry can mimic more realistic patterns of ties in complex networks. To identify the underlying geometry, past research has applied non-Euclidean extensions of multidimensional scaling (MDS) to the observed geodesic distances: the shortest path lengths between nodes. The difference in stress, a standard goodness-of-fit metric for MDS, across the geometries is then used to select a latent geometry with superior model fit (lower stress). The effectiveness of this method is assessed through simulations of latent space networks in Euclidean and hyperbolic geometries. To better account for uncertainty, we extend permutation-based hypothesis tests for MDS to the latent network setting. However, these tests do not incorporate any network structure. We propose a parametric bootstrap distribution of networks, conditioned on observed geodesic distances and the Gaussian Latent Position Model (GLPM). Our method extends the Davidson-MacKinnon J-test to latent space network models with differing latent geometries. We pay particular attention to large and sparse networks, and both the permutation test and the bootstrapping methods show an improvement in detecting the underlying geometry.