Financial markets as a Le Bonian crowd during boom-and-bust episodes: A complementary theoretical framework in behavioural finance

Battle Count: 73

The paper is a theoretical/conceptual framework with no direct applicability to quantitative trading strategies. It does not propose any models, signals, or algorithms that could be implemented in a trading system. However, it provides qualitative insights into market psychology during extreme events (bubbles, crashes) that could inform risk management heuristics, sentiment-based indicators, or understanding of regime shifts. The emphasis on emotional contagion, herding, and narrative dynamics could inspire qualitative overlays in trading systems, but the paper itself offers no quantitative implementation path.

Not applicable in a computational sense. The paper proposes a theoretical framework that is explicitly qualitative ('Such a model can therefore only be qualitative in nature and supported by empirical observation'). There is no algorithm, model, or system to implement. The framework is interpretive and conceptual rather than operational.

This is a purely theoretical and conceptual paper with no computational models, no empirical data analysis, and no code. It relies on qualitative literature synthesis and theoretical argumentation. Reproducibility in the computational sense is not applicable. The theoretical claims are interpretive and cannot be directly replicated or verified through a standardized procedure.