Infinite Chain of Smog
Yes, Chain of Smog works that way - whoever you choose to target can copy the spell, and whoever they choose to target can copy the spell, and on and on and on. Note that this does not constitute an "Infinite Loop" as per the rules, however, as these are not mandatory actions that will repeat without intervention. Each player targeted by Chain of Smog has to choose whether or not to copy the spell or not, so the loop doesn't just run forever without intervention. Even if you target yourself, you could choose to copy the spell 1 million times, but you can't choose to copy an infinite number of times to force a draw.