We consider the problem of community detection in the labeled Stochastic Block Model (labeled SBM) with a finite number of communities of sizes linearly growing with the network size . Every pair of nodes is labeled independently at random, and label appears with probability between two nodes in community and , respectively. One observes a realization of these random labels, and the objective is to reconstruct the communities from this observation. Under mild assumptions on the parameters , we show that under spectral algorithms, the number of misclassified nodes does not exceed with high probability as grows large, whenever (where ), and , where , referred to as the {\it divergence}, is an appropriately defined function of the parameters . We further show that is actually necessary to obtain less than misclassified nodes asymptotically. This establishes the optimality of spectral algorithms, i.e., when and , no algorithm can perform better in terms of expected misclassified nodes than spectral algorithms.
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