We propose and solve exactly a model of a network that has both a tunable degree distribution and a tunable clustering coefficient. Among other things, our results indicate that increased clustering leads to a decrease in the size of the giant component of the network. We also study susceptible/infective/recovered type epidemic processes within the model and find that clustering decreases the size of epidemics, but also decreases the epidemic threshold, making it easier for diseases to spread. In addition, clustering causes epidemics to saturate sooner, meaning that they infect a near-maximal fraction of the network for quite low transmission rates.
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