  We present results from a study of bias and its evolution for galaxy-size
halos in a large, high-resolution simulation of a LCDM model. We consider the
evolution of bias estimated using two-point correlation function (b_xi), power
spectrum (b_P), and a direct correlation of smoothed halo and matter
overdensity fields (b_d). We present accurate estimates of the evolution of the
matter power spectrum probed deep into the stable clustering regime
(k~[0.1-200]h/Mpc at z=0). The halo power spectrum evolves much slower than the
power spectrum of matter and has a different shape which indicates that the
bias is time- and scale-dependent. At z=0, the halo power spectrum is
anti-biased with respect to the matter power spectrum at wavenumbers
k~[0.15-30]h/Mpc, and provides an excellent match to the power spectrum of the
APM galaxies at all probed k. In particular, it nicely matches the inflection
observed in the APM power spectrum at k~0.15h/Mpc. We complement the power
spectrum analysis with a direct estimate of bias using smoothed halo and matter
overdensity fields and show that the evolution observed in the simulation in
linear and mildly non-linear regimes can be well described by the analytical
model of Mo & White (1996), if the distinction between formation redshift of
halos and observation epoch is introduced into the model. We present arguments
and evidence that at higher overdensities, the evolution of bias is
significantly affected by dynamical friction and tidal stripping operating on
the satellite halos in high-density regions of clusters and groups; we
attribute the strong anti-bias observed in the halo correlation function and
power spectrum to these effects. (Abridged)
