A: First they circle around each other, shy at first, then bolder. They move closer, exchange a whinny, a nod of the head, a flick of the tail. Soon, they're rubbing their necks against each other, smelling hair, making friends. Once they've established a level of comfort, the guys who make up the back of the horses get out and shake hands. Then they all stand around, cool off, and bitch about picking such stupid costumes.
I should have mentioned this before, but all my experiences with horses have been at Halloween parties. I assume real horses act the same way. There's probably less drinking.