Link Authorithy and Link Juice
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Hi, You might want to start with the Beginners Guide to SEO
Link Authority is how much authority a link has (obviously) and link juice is how much of that authority is passed to the linked page.
You obtain more authority by have authoritative sites link to our page or domain. The more authoritative those sites are, the more juice they will pass.
Link juice is diluted by the number of links on a page that passes juice. (the more links, the less juice)
The concept is that it takes more inbound links from less authoritative sites to equal the same juice passed from fewer links on more authoritative sites.
In practice a link from SEOmoz.org is far greater than one from SEOsudo.com. However, we are working on that : )
I hope this helps
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To see the juice passed from a link use Linkscape.
Technically a link does not have authority but the page in which it resides has the authority. Links on that page can pass link juice to another page. The amount of juice it passes depends on how much authority the page has and how many links are on that page.
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Pages authority is determined by the number of pages linking to that page and the the authority of that linking page. Or are you looking for the actual math behind this determination?