It's a game sort of like musical chairs... The room owner drops chairs randomly in the room until one person is left standing. That person is eliminated, and the process continues until only one person is left. That person wins.
Room owner places furniture in their room, guests race to sit in it.
One less seat available than guest.
Repeat until two guests and one chair.
Usually (but not always) the owner will give the winner a prize, such as a pin.
Some owners will allow a loser to "pay" to stay in the game (give the owner someting like a pin or piece of furniture)
If the owner gets enough people to "pay" when they lose in order to stay in the game, the owner will actually end up with MORE items then they give in prizes.