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Hilltop is based on an earlier work by Jon Kleinberg. "Authoritative Sources in a Hyperlink Environment"
On a broad based search term a set of Authoritative Sources are located by looking at the 200 highest-ranking pages for that exact search term (allow stemming if the exact term is not found).
If a large number of pages within a single domain point to the same page this is seen as a mass endorsement, advertisement or some sort of collusion among the referring pages – e.g. the phrase "This Site Designed by.." and a corresponding link at the bottom of each page in a give domain. [A domain as defined in HillTop is when the left most parts of the URL match, I do not know how pages on sites like geocities would be handled]
To eliminate this a parameter is added to only allow up to x number of pages from a single domain to count as a link.
Once I find them then try to get a link from them to me. It still looks like page rank to me.
One of the things that I've noticed is that when I do keyword searches, is that the Authoritative Source do not seem to show up in the results. If I do a back-link check on the pages that are ranked high then I find that they all have a links from the same pages.
Seems that the Authoritative/Hub page get sc*wed.