Transition probabilities
Let's start with an easier question. Suppose you play a round with $n$ players. We want to compute the probability that, after that round, there will be exactly $m$ players remaining, for some $m$ with $1 \leq m \leq n$. We'll call this probability $T_{n,m}$.
If $m < n$, this means that one of three things happened:
- $m$ players picked rock, $n-m$ picked scissors, none picked paper,
- $m$ players picked scissors, $n-m$ picked paper, none picked rock, or
- $m$ players picked paper, $n-m$ picked rock, and none picked scissors.
These are mutually exclusive options (for $0 < m < n$). Each of these options can occur in $\binom{n}{k}$ of the $3^n$ equally likely round configurations, so the total probability that one of them occurs is
$$
T_{n,m}=3\frac{\binom{n}{m}}{3^n}=\frac{\binom{n}{m}}{3^{n-1}}
$$
If $m=n$, then the number of different options picked was not exactly two (it was either three or one). So we'll compute $T_{n,n}$ by finding the probability that the number of options picked was exactly two, and then subtracting that from $1$.
We can compute the probability that exactly two options were picked by summing all the $T_{n,m}$ we already know and using the binomial theorem, but there's an easier approach. We can uniquely specify a configuration in which exactly two options were picked by choosing:
- An option to skip (in one of $3$ ways)
- A way for the $n$ players to choose between the other two options (in one of $2^n-2$ ways — here we're leaving out the $2$ ways in which all $n$ players choose the same other option).
So there are $3(2^n-2)$ configurations in which exactly two options are chosen, meaning the probability of landing in one of them is $\frac{3(2^n-2)}{3^n}$, or $\frac{2^n-2}{3^{n-1}}$. So
$$
T_{n,n}=1-\frac{2^n-2}{3^{n-1}}=\frac{3^{n-1}-2^n+2}{3^{n-1}}
$$
and we've now computed all the values of $T_{n,m}$ that we need.
Stopping probabilities
Now that we have that under our belt, let's compute the probability that, starting with $n$ players, it takes exactly $k$ rounds to finish. Let $p_{n,k}$ be that probability.
We'll start with some trivial cases. If $n=1$, we're already done! So we should take $p_{1,0}=1$, and $p_{1,k}=0$ for all $k>0$. Also, if $n>1$, we have to play at least one more round, so $p_{n,0}=0$ for all $n>1$.
For larger $n$ and $k$, we can use the transition probabilities we've already computed. For example, say we want to know $p_{4,3}$. After playing the first round, we'll be left with some number of players (between $1$ and $4$). The number of players we're left with is given by $p_{m,2}$ for some $m$; the probability we're left with that many players is $T_{n,m}$. So overall, we have
$$
p_{4,3}=T_{4,4}p_{4,2}+T_{4,3}p_{3,2}+T_{4,2}p_{2,2}+T_{4,1}p_{1,2}=\sum_{m=1}^4 T_{4,m}p_{m,2}
$$
In general, this kind of reasoning leads to a recursive formula for $p_{n,k}$:
$$
p_{n,k}=\sum_{m=1}^n T_{n,m}p_{m,k-1}
$$
I haven't been able to use this recursive formula to find a closed form for $p_{n,k}$, but it's certainly good enough to compute it for any fixed $n,k$. This Sage/Python code does that (though note that it's not at all optimized and will probably take a while to run):
#!/usr/bin/env sage -python
from sage.all import *
def transition_prob(n, m):
if n < m:
return 0
elif n == m:
return ZZ(3 ** (n - 1) - 2 ** n + 2) / ZZ(3 ** (n - 1))
else:
return binomial(n, m) / ZZ(3 ** (n - 1))
def p(n, k):
if n == 1 and k == 0:
return 1
elif n == 1 or k == 0:
return 0
else:
return sum(transition_prob(n, m) * p(m, k - 1) for m in range(1, n + 1))
Using this, here are some $p_{n,k}$ for specific small values of $n$ and $k$:
\begin{array}{c|ccccc}
& 2 & 3 & 4 & 5 & 6\\
\hline1 &
2/3
&
1/3
&
4/27
&
5/81
&
2/81
\\
2 &
2/9
&
1/3
&
196/729
&
125/729
&
1922/19683
\\
3 &
2/27
&
5/27
&
4492/19683
&
11405/59049
&
644342/4782969
\\
4 &
2/81
&
7/81
&
81724/531441
&
89125/531441
&
161571182/1162261467
\\
5 &
2/243
&
1/27
&
1324852/14348907
&
5544485/43046721
&
35534152202/282429536481
\\
6 &
2/729
&
11/729
&
20057428/387420489
&
3976885/43046721
&
7285176581882/68630377364883
\\
7 &
2/2187
&
13/2187
&
290507260/10460353203
&
1994764685/31381059609
&
1433492089339262/16677181699666569
\\
8 &
2/6561
&
5/2187
&
4082704396/282429536481
&
12026993765/282429536481
&
274981525969093862/4052555153018976267
\\
9 &
2/19683
&
17/19683
&
56174521060/7625597484987
&
641108146565/22876792454961
&
51889668896621508242/984770902183611232881
\end{array}
I see no obvious pattern for $k>1$ and $n>3$, but you are invited to look for one!
To three significant figures, these numbers are:
\begin{array}{c|ccccc}
&2&3&4&5&6 \\
\hline
1 &
0.667
&
0.333
&
0.148
&
0.0617
&
0.0247
\\
2 &
0.222
&
0.333
&
0.269
&
0.171
&
0.0976
\\
3 &
0.0741
&
0.185
&
0.228
&
0.193
&
0.135
\\
4 &
0.0247
&
0.0864
&
0.154
&
0.168
&
0.139
\\
5 &
0.00823
&
0.0370
&
0.0923
&
0.129
&
0.126
\\
6 &
0.00274
&
0.0151
&
0.0518
&
0.0924
&
0.106
\\
7 &
0.000915
&
0.00594
&
0.0278
&
0.0636
&
0.0860
\\
8 &
0.000305
&
0.00229
&
0.0145
&
0.0426
&
0.0679
\\
9 &
0.000102
&
0.000864
&
0.00737
&
0.0280
&
0.0527
\end{array}
So, roughly speaking, the $2$-player game most likely takes $1$ round; the $3$-player game $1$ or $2$; the $4$-player game $2$; the $5$-player game $3$; and the $6$-player game $3$ or $4$.
Imagine all $2^n$ players with names Alice, Bob, Charlie and so on stay in line. Then they are given a blue card with a number from $1$ to $2^n$ which means their skill in game and a red card with a number from $1$ to $2^n$ which means their position in a tournament bracket.
Given a permutation of blue cards $p_b$ and a permutation of red cards $p_r$ we can calculate how the tournament will go. Or in other words, predict all $2^n-1$ pairing that will happen in the tournament.
Imagine this huge table with $N=(2^n!)^2$ rows (each row corresponds to a particular permutation $p_b$ and $p_r$) and $M=2^n-1$ columns (all predicted pairings for a given row). Is pair Alice-Bob is more frequent in this table than Alice-Charlie? Of course, no. Because for every row with particular cards of Bob and Charlie, there is a row with cards of Bob and Charlie swapped. Thus we conclude that every $k={2^n\choose 2}=2^{n-1}(2^n-1)$ pair of names has the same number of entries in the table.
Then what is the number $x$ of rows with a particular pair in it? Since pair cannot happen in the same row twice:
$$
x\times k=N\times M, \qquad x=\frac{NM}k
$$
What is the probability to pick one of those $x$ rows?
$$
p=\frac xN = \frac Mk = \frac{2^n-1}{2^{n-1}(2^n-1)}=2^{-(n-1)}.
$$
Best Answer
Your result $f(n)=(2^n-1)f(2^n-2)$ is correct (though it could have been more easily derived by noting that a player is equally likely to be paired with any of the $2^n-1$ other players). Note that you wrote $2n$ instead of $2^n$ in several places.
Your final result is wrong on several counts: It should say $4^i$ instead of $4^n$; the sum should only run up to $n-1$; and you didn't take into account that the later stages are only reached if the two aren't paired before, e.g. the second term isn't
$$\frac1{2^{n-1}-1}\frac1{4^1}$$
but
$$\frac{2^n-2}{2^n-1}\frac1{2^{n-1}-1}\frac1{4^1}\;.$$
The first numerator and second denominator cancel up to a factor $2$, and the same for subsequent terms, so the correct sum is
$$ \sum_{i=0}^{n-1}\frac1{2^n-1}\frac1{2^i}=\frac1{2^n-1}\frac{1-(1/2)^n}{1-(1/2)}=2^{1-n}\;, $$
consistent with the result that Hagen derived by a more elegant argument in a comment.