Edge exchangeable models for network data

Exchangeable models for vertex labeled graphs cannot replicate the large sample behaviors of sparsity and power law degree distributions observed in many network datasets. Out of this mathematical impossibility emerges the question of how network data can be modeled in a way that reflects known empirical behaviors and respects basic statistical principles. We address this question by observing that edges, not vertices, act as the statistical units in most network datasets, making a theory of edge labeled networks more natural for most applications. Within this context we introduce the new invariance principle of {\em edge exchangeability}, which unlike its vertex exchangeable counterpart can produce networks with sparse and/or power law structure. We characterize the class of all edge exchangeable network models and identify a particular two parameter family of models with suitable theoretical properties for statistical inference. We discuss issues of estimation from edge exchangeable models and compare our approach to other attempts at the above question.