Title: Functional reducibility of higher-order networks

Abstract: Empirical complex systems are widely assumed to be characterized not only by pairwise interactions, but also by higher-order (group) interactions that affect collective phenomena, from metabolic reactions to epidemics. Nevertheless, higher-order networks' superior descriptive power -- compared to classical pairwise networks -- comes with a much increased model complexity and computational cost. Consequently, it is of paramount importance to establish a quantitative method to determine when such a modeling framework is advantageous with respect to pairwise models, and to which extent it provides a parsimonious description of empirical systems. Here, we propose a principled method, based on information compression, to analyze the reducibility of higher-order networks to lower-order interactions, by identifying redundancies in diffusion processes while preserving the relevant functional information. The analysis of a broad spectrum of empirical systems shows that, although some networks contain non-compressible group interactions, others can be effectively approximated by lower-order interactions -- some technological and biological systems even just by pairwise interactions. More generally, our findings mark a significant step towards minimizing the dimensionality of models for complex systems