The article explores how one party can manipulate renegotiation costs to increase their payoff in incomplete contracts. By introducing positive renegotiation costs, renegotiations are prevented from happening, acting as a credible threat. This strategy allows for a higher share of the bargaining surplus for the party with less bargaining power. The researchers also apply this model to an investment problem, showing that setting positive renegotiation costs can incentivize high-skilled agents to invest more.