Here is my code:
<link href="Content/chosen.css" rel="stylesheet" type="text/css"/>
<div>
<select id="chzn-select" data-placeholder="Select an option...">
<option value=""></option>
<option value="Option1">Option 1</option>
<option value="Option2">Option 2</option>
</select>
</div>
<script type="text/javascript" src="../Scripts/jquery-1.8.2.js"></script>
<script type="text/javascript" src="../Scripts/chosen.jquery.js"></script>
<script type="text/javascript" src="../Scripts/chosen.jquery.min.js"></script>
<script type="text/javascript">
$("#chzn-select").chosen();
</script>
This is the result:

I can “select” Option 1 or Option 2, and they will appear where the “Select an option…” label is.
Please try below code, it working for me.
Here is the JSFIddle (working demo of your code)
chosen.jquery.js was included twice in your code. Also i think chosse.css path need to be corrected in your code as per your directory structure.