Roleplaying
From Lotro-Wiki.com
In roleplaying, participants adopt and act out the role of characters, or parts, that may have personalities, motivations, and backgrounds different from their own. Roleplaying is like being in an improvisational drama or free-form theatre, in which the participants are the actors who are playing parts, and the audience.
Role-playing games
A role-playing game is a type of game in which the participants assume the roles of characters and collaboratively create stories. Participants determine the actions of their characters based on their characterization, and the actions succeed or fail according to a formal system of rules and guidelines. Within the rules, they may improvise freely; their choices shape the direction and outcome of the games.
Source: Wikipedia

