Cosmological models with cold dark matter composed of weakly interacting pa
rticles predict overly dense cores in the centers of galaxies and clusters
and an overly large number of halos within the Local Group compared to actu
al observations. We propose that the conflict can be resolved if the cold d
ark matter particles are self-interacting with a large scattering cross sec
tion but negligible annihilation or dissipation. In this scenario, astronom
ical observations may enable us to study dark matter properties that are in
accessible in the laboratory.