Lösch's Central Place Theory

Lösch's Central Place Theory, developed in the mid-20th century, explains how cities and towns are organized in a landscape. It suggests that settlements serve as 'central places' providing goods and services to surrounding areas. These places are strategically located to maximize their market area while minimizing competition. Larger towns offer specialized services and attract customers from wider regions, while smaller places provide basic services. This creates a hierarchical pattern of settlements, where larger centers are spaced further apart, ensuring efficient distribution of goods and services in a balanced economic system.