What Is Losch Model

A model of central places developed by A. Lösch (1954) which is less narrow than that of Christaller, in that it treats the range, threshold, and hexagonal hinterland of each function separately.

What is Losch Theory?

August Losch, a German economist, published his Theory of ‘Profit Maximisation‘ in the year 1954. According to Losch, industry will not necessarily be located within the least cost (transport cost and labour cost) location; rather it would locate in areas where maximum profit will occur.

How is the central place theory used?

Central Place Theory sought to explain the economic relationships of cities with smaller settlements. It also seeks to explain why cities are located where they are geographically and how they serve the surrounding smaller settlements with speciality goods and services.