arXiv2026
In directed networks, nodes may form groups with similar interaction patterns, while these groups may themselves follow an ordered structure. Existing methods typically treat these features separately, either clustering nodes without enforcing a coherent block order, or ranking individual nodes without allowing for structurally equivalent groups. We introduce the Transitive Stochastic Block Model (TSBM), a Bayesian model for directed weighted networks that uses transitivity-inducing priors to infer ordered blocks. The model separates the total volume of interaction between two nodes from the direction of interaction conditional on interaction occurring, so that hierarchy is imposed on directional imbalance rather than interaction frequency. We consider two order-restricted specifications: a flexible weak-stochastic-transitivity version, which excludes cyclic dominance patterns while allowing heterogeneous block-pair strengths, and a Toeplitz strong-stochastic-transitivity version, in which directional advantage increases with rank separation. Posterior inference is performed through a Gibbs sampler using P\'olya-Gamma data augmentation. Since ordered block labels are not exchangeable, we introduce an age-ordered partition prior to infer the number of blocks jointly with node allocation. Simulation studies show that order-constrained priors improve prediction and partition recovery, especially in sparse networks. Across six empirical directed networks, the TSBM improves predictive performance in four cases and yields partitions with clearer ordered structure. The results also identify cases, such as nearly deterministic dominance networks or non-transitive citation networks, where imposing ordered blocks can harm prediction. The TSBM therefore provides a probabilistic framework for estimating ordered groups and assessing when a transitive block structure is supported by the data.