Latent space models for networks with nodal multiplicative effects

Latent space models represent network nodes as points in a geometric space, with connection probabilities determined by distances between latent positions under a fixed metric, typically Euclidean, spherical, or hyperbolic. We generalize the classical formulation by introducing nodal multiplicative effects motivated by a local deformation of the latent metric. This modification approximates a conformal deformation of the metric tensor while preserving the logistic predictor and the geometric interpretability of the model, thereby capturing additional structural heterogeneity without altering the global reference geometry. We study the generative behavior of the proposed model through simulation experiments and develop an optimization-based inference scheme derived from a hierarchical Bayesian formulation with parameter regularization. Applications to eight real networks show that the proposed approach increases the generative flexibility of classical latent space models and more accurately reproduces several topological properties observed in real networks.