Rules sends email to node author when a node referencing it is created?

Question

I am using the node reference module to create a link on my node allowing the user to add a page which references the node. This newly created node likewise has its own link allowing another page referencing this newly created node. And so on and so on.

How can I create a rule which will send an email notification to both it's parent node author and everyone higher up the chain?

Or is there a better way to do it not using rules?

I'm up for any ideas.