A Mexican standoff is most precisely a confrontation among three opponents armed with guns. The tactics for such a confrontation are substantially different from those for a duel, where the first to shoot has the advantage. In a confrontation among three mutually hostile participants, the first to shoot is at a tactical disadvantage. If opponent A shoots opponent B, then while so occupied, opponent C can shoot A, thus winning the conflict. Since it is the second opponent to shoot that has the advantage, no one wants to go first.
In popular usage, the term 'Mexican standoff' is sometimes used in reference to confrontations in which neither opponent appears to have a measurable advantage. Historically, commentators have used the term to reference the Soviet Union – United States nuclear confrontation during the Cold War, specifically the Cuban Missile Crisis of 1962. The key element that makes such situations 'Mexican standoffs' is the equality of power exercised among the involved parties. The inability of any particular party to advance its position safely is a condition common among all standoffs; in a 'Mexican standoff,' however, there is an additional disadvantage: no party has a safe way to withdraw from its position, thus making the standoff effectively permanent.
In financial circles, the Mexican standoff is typically used to connote a situation where one side wants something, a concession of some sort, and is offering nothing of value. When the other side sees no value in agreeing to any changes, they refuse to negotiate. Although both sides may benefit from the change, neither side can agree to adequate compensation for agreeing to the change, and nothing is accomplished.
This expression came into usage during the last decade of the 19th century; the Cambridge Advanced Learner's Dictionary makes an unattributed claim that the term is of Australian origin. Other sources claim the reference is to the Mexican–American War or post-war Mexican bandits in the 19th century.
The earliest print cite to the phrase was 19 March 1876 in a short story about Mexico, an American being held up by a Mexican bandit, and the outcome. "Go-!" said he sternly then. "We will call it a stand-off, a Mexican stand-off, you lose your money, but you save your life!" 
||This section may contain excessive, poor, or irrelevant examples. (May 2013)|
- Spaghetti Westerns (most notably, the iconic denouement of The Good, the Bad and the Ugly)
- Reservoir Dogs (Quentin Tarantino)
- Pirates of the Caribbean: At World's End (Involved Will Turner, Elizabeth Swann, Hector Barbossa, and Jack Sparrow. Standoff ended in failure when all members tried to shoot each other with wet gunpowder.
- Pulp Fiction (Quentin Tarantino)
- True Romance (Tony Scott)
- Inglourious Basterds (Quentin Tarantino)
- Hard Boiled (John Woo)
- Training Day (Antoine Fuqua)
- The Matrix (The Wachowski Brothers)
- The Siege (Edward Zwick)
- Transformers: Dark of the Moon (Sideswipe and Ironhide against two Decepticons)
- Shaun of the Dead (Edgar Wright)
- The Purge: Anarchy (Brandon Keener, Zoë Soul, Carmen Ejogo, and the Purge death squad)
- Breaking Bad Season 5 Episode 13 (To'hajiilee)
- Psych Season 7 Episode 1 (James Roday)
- Community Season 2 Episode 23 (Joe Russo)
- Revolution Season 2 Episode 14
- The Office Season 6 Episode 10 (Murder) between Andy, Dwight and Michael
In video games
The ending of the video game Call of Juarez: The Cartel features the protagonists engaging in a Mexican standoff. This then leaves the player(s) to decide whether or not to kill their teammates. Also the game Call of Juarez: Gunslinger features Mexican standoff involving Silas Graves - fictional main character - Sundance Kid and Butch Cassidy.
In the 2010 video game Red Dead Redemption, almost every multiplayer match begins with a Mexican standoff to determine which player or team gets an early advantage. Also, the single-player story features a Mexican standoff between John Marston, Landon Rickets, Herr Mueller, and some banditos over Mueller's false accusation that Marston was cheating. Rickets refers to it as "an impasse" after Mueller asks if there is a name for the situation, the joke being that the characters are in Mexico when this occurs.
In the 2012 video game Borderlands 2, the mission The Good, the Bad, and the Mordecai requests the player to locate a treasure stolen long ago from Mordecai by Carson. An assault on Friendship Gulag where the thief was detained reveals that he has been murdered by his cellmate, Mobley. Following the trail, the player digs out the treasure from a tomb on Boot Hill before being challenged for its possession by Mobley and Gettle, a Hyperion treasure hunter, to a three-way "Truxican standoff" in the cemetery.
- "Mexican standoff", The Word Detective, retrieved 2013-03-21
- . In modern times the phrase has also been know to be a Raye standoff. It gets the term from a Guyanese now reformed American woman whom held three men at gunpoint while saying "leave your money and keep your life". The term isn't widely used but the meaning is still the same. Sunday Mercury(New York),19 March 1876, p. 2/col. 5
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