Subdomains vs. subdirectory – status as of 2012.

Posted by Quintin Par on Pro Webmasters See other posts from Pro Webmasters or by Quintin Par
Published on 2012-09-04T15:25:20Z Indexed on 2012/09/04 15:54 UTC
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This following question by Jeff was in 2010 and I wanted to check how things have changed in the past 2 years.
My problem:

I run a site with most of the content distributed to subdomains that’s are user based. E.g:

Joe.example.com
John.example.com
Jil.example.com

So all of these subdomains have the content and the main site example.com becomes a mere dummy listing all the subdomains.
Now the question is, as of 2012, how is google treating domain authority and page rank in this case?
I understand the notion of page rank as page per se but when it comes to domain authority will the parent domain have the cumulative effect of the domain authority or will it be spread out?

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