Traffic microsimulation models simulate the behavior of individual vehicles within a predefined road network and are used to predict the likely impact of changes in traffic patterns resulting from changes to traffic flow or from changes to the physical environment in microscopic detail. This involves treating each vehicle, bus, train, tram, cyclist, pedestrian etc. in the model as a unique entity with its own goals and behavioral characteristics; each possessing the ability to interact with other entities in the model.
Micro-simulation has its greatest strength in modelling congested road networks due to its ability to simulate queuing conditions. Microsimulation models will continue to provide results at high degrees of saturation, up to the point of absolute gridlock. This capability makes these type of models very useful to analyse traffic operations in urban areas and city centers, including interchanges, roundabouts, unsignalized and signalized intersections, signal coordinated corridors, and area networks. Microsimulation also reflects even relatively small changes in the physical environment such as the narrowing of lanes or the relocation of junction stop lines.
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Source: Aimsun.com, paramics-online.com, wikipedia.org.