Bounded Rationality Decision-Making Model

The Bounded Rationality Decision-Making Model, proposed by Herbert Simon, challenges the notion of perfect rationality by acknowledging that decision-makers often face limitations in processing information and time constraints. Instead of aiming for optimal decisions, this model suggests that individuals make satisfactory decisions that are "good enough" given the constraints. It emphasizes satisficing rather than maximizing outcomes, taking into account cognitive limitations, incomplete information, and the complexity of real-world decisions. This approach allows decision-makers to navigate uncertainty and make pragmatic choices that balance effectiveness with feasibility.

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