When autocomplete changes a value, it fires a autocompletechange event, not the change event
$(document).ready(function () {
$('#tags').on('autocompletechange change', function () {
$('#tagsname').html('You selected: ' + this.value);
}).change();
});
Demo: Fiddle
Another solution is to use select event, because the change event is triggered only when the input is blurred
$(document).ready(function () {
$('#tags').on('change', function () {
$('#tagsname').html('You selected: ' + this.value);
}).change();
$('#tags').on('autocompleteselect', function (e, ui) {
$('#tagsname').html('You selected: ' + ui.item.value);
});
});
Demo: Fiddle