  We investigate the dynamical behavior of binary fluid systems in two
dimensions using dissipative particle dynamics. We find that following a
symmetric quench the domain size R(t) grows with time t according to two
distinct algebraic laws R(t) = t^n: at early times n = 1/2, while for later
times n = 2/3. Following an asymmetric quench we observe only n = 1/2, and if
momentum conservation is violated we see n = 1/3 at early times. Bubble
simulations confirm the existence of a finite surface tension and the validity
of Laplace's law. Our results are compared with similar simulations which have
been performed previously using molecular dynamics, lattice-gas and
lattice-Boltzmann automata, and Langevin dynamics. We conclude that dissipative
particle dynamics is a promising method for simulating fluid properties in such
systems.
