The Bounded Rationality Model is a concept in decision-making that suggests individuals are limited in their ability to process information. This limitation arises from constraints such as time, cognitive capacity, and available information. As a result, people often settle for a satisfactory solution rather than the optimal one, a process known as "satisficing." Developed by psychologist Herbert Simon, the model emphasizes that decision-makers operate within a framework of bounded rationality. They use heuristics or mental shortcuts to simplify complex problems, which can lead to effective decisions but may also result in biases or errors.