The psycho-social theory isn't about madness of crowds or popular delusions, it is about the way we process unexpected stimuli in the head, and how sometimes that processing is influenced by social factors. Every time we see a UFO (and I see them regularly, and so do you) we go through a process of identification and elimination which rapidly identifies it as a mundane object or phenomenon. This process can take seconds, sometimes minutes. I've often seen an object I couldn't identify immediately, and I've seen many objects that other people might have perceived as a craft of some sort, but which I was able to recognise for various reasons*. So the UFO usually turns into an IFO, for almost all sightings.
But if, for any reason, that period of uncertainty lasts longer than the time it takes to identify the phenomenon in question, then what you have at the end is an unidentified phenomenon - a UFO, or (as I prefer) a UAP (Unidentified Aerial Phenomenon). Many UAPs are not even in the Earth's atmosphere, but are located far beyond it (although atmospheric effects can often change their appearance significantly, for instance the scintillation of Sirius which is the cause of a great number of reports of flashing, coloured lights).
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*Once I had a phone call reporting a stationary UFO hovering in the night sky; I went outside and I could see it too. It was a close conjunction between Jupiter and Mars, the third- and fourth-brightest natural objects in the sky. They were so close they looked like a single object. Of course the fact that I'd been watching this conjunction develop for a week or so kinda helped - but it is nice to be able to explain someone else's sighting over the phone. I have a fairly strong conviction that absolutely every genuine sighting of this kind can be explained if you have access to enough information, especially if you can actually see the phenomenon yourself.