Person #1 begins by writing a title on a piece of paper.
Person #2 writes the first paragraph and then folds the paper so the next person can't see what Person #1 wrote.
Person #3 can only see what Person #2 wrote. He writes the next paragraph and hides what Person #2 wrote.
Person #4 can only see what Person #3 wrote ... and so on. The last person gets to finish the story.
What you get in the end is a story with strange continuity, yet hilarious turns of events.
Here's a sample ... a story we co-wrote:
One day, a giant pie was about to be devoured by millions of civilians of Burma, but they accidentally spilled pink paint all over it. A man said he could solve their problem. His name was Jack.
Jack was a painter. He took out his paintbrush and brushed it all over the pie. Then he painted the entire city pink, even the ravenous civilians. Then the pie exploded.
The pie exploded pink applesauce. The entire city tasted like mint ice cream. Jack then died from shock.
For Jack's funeral, they served pink applesauce, and all the moms thought that was insensitive. Especially with all the mint ice cream melting everywhere.
So after the funeral, there was a celebration of Life. Everyone partied hard and crashed into their beds dreaming of pink and mint colored fairies.