The operating agreements of many business ventures include clauses to facilitate the exit of joint
owners. In so-called Texas Shootouts, one owner names a single buy-sell price and the other owner
is compelled to either buy or sell shares at that named price. Despite their prevalence in real-world
contracts, Texas Shootouts are rarely triggered. In our theoretical framework, sole ownership is
more efficient than joint ownership. Negotiations are frustrated, however, by the presence of
asymmetric information. In equilibrium, owners eschew buy-sell offers in favor of simple offers to
buy or to sell shares and bargaining failures arise. Experimental data support these findings.