Large redshift surveys of galaxies and clusters are providing the first opportunities to search for distortions in the observed pattern of large-scale structure due to such effects as gravitational redshift. We focus on non-linear scales and apply a quasi-Newtonian approach using N-body simulations to predict the small asymmetries in the cross-correlation function of two galaxy different populations. Following recent work by Bonvin et al., Zhao and Peacock and Kaiser on galaxy clusters, we include effects which enter at the same order as gravitational redshift: the transverse Doppler effect, light-cone effects, relativistic beaming, luminosity distance perturbation and wide-angle effects. We find that all these effects cause asymmetries in the cross-correlation functions. Quantifying these asymmetries, we find that the total effect is dominated by the gravitational redshift and luminosity distance perturbation at small and large scales, respectively. By adding additional subresolution modelling of galaxy structure to the large-scale structure information, we find that the signal is significantly increased, indicating that structure on the smallest scales is important and should be included. We report on comparison of our simulation results with measurements from the SDSS/BOSS galaxy redshift survey in a companion paper.
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