The bounded rationality model of decision making recognizes the limitations of our decision-making
processes. According to this model, individuals knowingly limit their options to a manageable set and
choose the first acceptable alternative without conducting an exhaustive search for alternatives. An
important part of the bounded rationality approach is the tendency to satisfice (a term coined by
Herbert Simon from satisfy and suffice), which refers to accepting the first alternative that meets your
minimum criteria. For example, many college graduates do not conduct a national or international search
for potential job openings. Instead, they focus their search on a limited geographic area, and they tend to
accept the first offer in their chosen area, even if it may not be the ideal job situation. Satisficing is similar
to rational decision making. The main difference is that rather than choosing the best option and
maximizing the potential outcome, the decision maker saves cognitive time and effort by accepting the
first alternative that meets the minimum threshold.