Currently, when the horse is zero hp it enters a mercy mode, massively slowing down and usually being killed in the next few seconds. Even if it is not immediately killed, it only serves as a nuisance for one of the fighters and usually dies during the fight anyway.
The problem is that when two people (or maybe small groups) are fighting in a remote location, regardless of who wins, people are likely to be left there without their horses. Traveling anywhere without horses is very tedious. Getting your loot out of there (even just the one you were carrying with you, on YOUR horse) becomes infeasible. Suiciding right after killing the enemy becomes a very tempting prospect.
To improve the situation, it would make sense to somehow get the winners to keep or obtain horses after the fight. For that, horses must first somehow survive the fight, preferably without changing the current fight dynamics. How about, instead of the horse entering a mercy mode right away, make it so it bolts away in fear far away, running and ignoring everyone, effectively exiting the fight for some time. It should drop its rider on the ground, so that it disables him for a moment, just like it currently takes some time for him to get off the mercy mode horse. Then the fight proceeds effectively as if the horse had died. After some time (or maybe if the fight in the area stops) the horse returns to the place it ran away from. If the owner has won, he can get back on his horse, bags full of loot. If he died, the horse can be looted by the other side. Preferably, it should be possible to steal the horse, too, but this is not necessary to alleviate the stated problem.
The problem is that when two people (or maybe small groups) are fighting in a remote location, regardless of who wins, people are likely to be left there without their horses. Traveling anywhere without horses is very tedious. Getting your loot out of there (even just the one you were carrying with you, on YOUR horse) becomes infeasible. Suiciding right after killing the enemy becomes a very tempting prospect.
To improve the situation, it would make sense to somehow get the winners to keep or obtain horses after the fight. For that, horses must first somehow survive the fight, preferably without changing the current fight dynamics. How about, instead of the horse entering a mercy mode right away, make it so it bolts away in fear far away, running and ignoring everyone, effectively exiting the fight for some time. It should drop its rider on the ground, so that it disables him for a moment, just like it currently takes some time for him to get off the mercy mode horse. Then the fight proceeds effectively as if the horse had died. After some time (or maybe if the fight in the area stops) the horse returns to the place it ran away from. If the owner has won, he can get back on his horse, bags full of loot. If he died, the horse can be looted by the other side. Preferably, it should be possible to steal the horse, too, but this is not necessary to alleviate the stated problem.
