Let's understand a little more about page rank

I often find people worried about their page rank and I have discussed about this in one of my previous post. Today let's move a step forward and understand some important concepts of page rank.

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Now the most common question about page rank in everyone's mind is about the inter-page linking. People often are confused if link juice would be passed in this condition or not? 
Luckily the answer is YES! link juice passes through page1 to page2 of the same site.Let's have an example to make it clear:
If example.com's home page has a page rank of 5 it will be equally divided among all outgoing links(only those pass juice) on the page. Say one of those link is to the contact page of same site, then one part of page rank will pass to contact page from it's home page.

Now, if you are thinking about the situation if one of the outgoing link  points the same page?
Again the answer is YES!. The same page will receive a part of it's own page rank. Let's have an example for this:
Say if example.com has page rank 5 and has got a outgoing link(passing juice) in it's content pointing to the same page i.e example.com,Here example.com will receive a part of juice from example.com

Considering the above situations I will suggest you to always put at least one outgoing link to the same page,I learnt this from my personal experience that when you link the same page it reduces the part of page rank you will lose. It's the same concept giant brands like P&G,Hindustan Unilever do. They become their own competitor i.e they introduce the same product in the market under different names, due to which the customers keep on changing to their products under different names.This reduces the percentage loss of customer in the market.In the same way the whole page rank of your site will be divided to the number of outgoing links. And from those links if one or two point to the same page the percentage loss of PR will be reduced. But this will make difference only in extreme level, where the competition is neck to neck. Generally you need not worry about this facts,rather focus to put better content on your site.

Here's a video of Shree Matt Cutts speaking on the same topic: