  We use N-body simulations to test the predictions of the redshift distortion
in the power spectrum given by the halo model in which the clustering of dark
matter particles is considered as a result both of the clustering of dark halos
in space and of the distribution of dark matter particles in individual dark
halo. The predicted redshift distortion depends sensitively on several model
parameters in a way different from the real-space power spectrum. An accurate
model of the redshift distortion can be constructed if the following properties
of the halo population are modelled accurately: the mass function of dark
halos, the velocity dispersion among dark halos, and the non-linear nature of
halo bias on small scales. The model can be readily applied to interpreting the
clustering properties and velocity dispersion of different populations of
galaxies once a cluster-weighted bias (or equivalently an halo occupation
number model) is specified for the galaxies. Some non-trivial bias features
observed from redshift surveys of optical galaxies and of IRAS galaxies
relative to the standard low-density cold dark matter model can be easily
explained in the cluster weighted bias model. The halo model further indicates
that a linear bias can be a good approximation only on for k <= 0.1 hMpc^{-1}.
