Coby and Reggie (both neutered) also seem to prefer this way of working out their places in the pack. I've tried to just have them sit down and discuss it like civilized doggies, but they think their way is more fun.
Reggie (our older Shi Tzu) is usually the dominating one... every once in a while he'll "allow" Coby to have a go. It is natural and harmless.
However, when mine get carried away, I just squirt them with the water bottle and distract them with something else to do. While it is natural in the wild, they do live in my house. I still make the rules and wouldn't want to not be able to control that if I had company that didn't find that entertainment to their liking.
So, it is natural. But you don't have to let them get carried away.....