[2] The þáttr tells the tale of a battle of wits between Sarcastic (or Skinny)[3] Halli and Thjodolf master-poet in their attempts to appeal to King Harald.
Sarcastic Halli, an Icelander named for his sharp wit, entered into King Harald’s service and into competition with the court's master-poet, Thjodolf, to see who was the best.
[5] The story ends with Sneglu-Halli returning to the Norwegian king's court on a ship, after he frightens a group of German merchants in order to gain passage.
It is believed that skaldic poetry can be used to illustrate mundane activities as myths and legends, to not only insult the subject but maintain the poetic verse as high art.
[6] In effect, the ability, or lack thereof, to understand and differentiate quality from poor poetry and the complexity of the kennings within stands as a litmus test for esoteric or exoteric status.
It's believed that Halli's and Thjodolg's status as Icelanders in a Norwegian court, and therefore the absence of the common knowledge of these individuals' histories, is the driving force for allowing a break in the senna structure.
[10] The interactions between King Harold and Halli in the axe scene has been used to demonstrate Nordic gift-giving practices and the fundamental importance between the words used for "to give" and "to sell".