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[Robmuller]

I run a directory that covers 100 cities. Every city page links internally to all of the other 99 cities. Besides that the site has about 600 external inbound links that deeplink to the relevant page (for example: a restaurant in Chicago links to the Chicago restaurant page).

Since search engines will flood the page rank across the pages within the domain by following the internal link structure I'm wondering what is from SEO more effective: only link internally from the homepage to the 100 cities and remove the links to the other 99 cities from the "city pages" or actually link from the "city pages" to the other 99 cities? Reason for asking is that I remember reading a while ago that Google will only transfer 85% of the page rank when following an (internal) link. Eventually this results in the loss of page rank from my point of view. On the other hand. by adding internal links on every "city page", will result in 100 internal links with a relevant anchor text (e.g. New York restaurants).

Anyone experience with this?