Place Theory is a concept in auditory perception that explains how we perceive different pitches of sound. According to this theory, different frequencies of sound waves stimulate specific areas along the basilar membrane in the cochlea of the inner ear. Higher frequencies activate hair cells near the base, while lower frequencies stimulate cells closer to the apex, allowing the brain to identify the pitch of a sound. This theory was first proposed by Hermann von Helmholtz in the 19th century and has been influential in understanding how we process auditory information. Place Theory helps explain why we can distinguish between various musical notes and sounds in our environment, contributing to our overall auditory experience.