One of the few observational facts that we know about dark matter is that within about one tenth of the virial radius, the dark halos of some galaxies have density profiles which fall with the radius as ρ(r)∝rn, where n≊0. Any successful dark matter candidate must be able to reproduce these observations. Cold dark matter (CDM) particles interact primarily by gravity and therefore cluster with no preferred scale, hence galaxy halos are predicted to have singular density profiles with approximately isothermal power law slopes on all scales (Filmore & Goldreich 1984, Bertschinger 1985). The theoretical predictions do not take account of the irregular merging and virialisation processes taking place during structure formation. Therefore, we must compare the observations with numerical N‐body simulations which are ideally suited for this type of problem and have just begun to probe structure formation on these scales. The highest resolution simulations (Dubinski & Carlberg 1991, Warren et al. 1992, Carlberg 19...