From what I remember the mobs had to be fairly close together for it to happen so it was much more noticeable in indoor zones. I think it also has to do with whether or not those NPC's will socially agro or not. In Greater Faydark, for example, if you agro one giant wasp drone others will join if they come nearby. Neither will run until they are the last one alive (haven't tested that here). If you were fighting a wasp and got jumped by an orc pawn, however, I'm nearly positive they wouldn't impact whether or not the other one began to flee.
My assumption is that it works based on whether or not they will agro together socially. I'm pretty sure a sand giant wouldn't in itself bring a nearby dry bones into the fight unless you were close enough yourself.
Please correct me if I'm wrong...
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