  I review recent progress in understanding and modeling galaxy clustering in
cosmological simulations, with emphasis on models based on high-resolution
dissipationless simulations. During the last decade, significant advances in
our understanding of abundance and clustering of dark matter halos allowed
construction of accurate, quantitative models of galaxy clustering both in
linear and non-linear regimes. Results of several recent studies show that
dissipationless simulations with a simple, non-parametric model for the
relation between halo circular velocity and luminosity of the galaxy they host
predict the shape, amplitude, and luminosity dependence of the two-point
correlation function in excellent agreement with the observed galaxy clustering
in the SDSS data at z~0 and in the DEEP2 samples at z~1 over the entire probed
range of projected separations. In particular, the small-scale upturn of the
correlation function from the power-law form in the SDSS and DEEP2
luminosity-selected samples is reproduced very well. At z~3-5, predictions also
match the observed shape and amplitude of the angular two-point correlation
function of Lyman-break galaxies (LBGs) on both large and small scales,
including the theoretically predicted strong upturn at small scales. This
suggests that, like galaxies in lower redshift samples, the LBGs are fair
tracers of the overall halo population and that their luminosity is tightly
correlated with the circular velocity (and hence mass) of their dark matter
halos.
