Wally believed the person who cut him off on the highway was inconsiderate and selfish, but if he was in a hurry, he would believe himself to be justified in cutting off another driver. John believed the person who cut him off on the highway was inconsiderate and selfish.

actor/observer discrepancy; fundamental attribution error

Explanation:

Actor-Observer bias: In social psychology, the term actor-observer bias or discrepancy is defined as the phenomenon in which an individual tends to attribute his or her behavior to external cause and therefore attributing the other person's behavior as an internal cause.

Fundamental attribution error: In psychology, the term fundamental attribution error was proposed by Lee Ross who was a social psychologist during 1977. It is defined as the phenomenon in which an individual describes the other person's behavior based on the internal factors including personality whereas underestimating the external factors influence including situational influence.

In the question above, Wally's behavior can be explained in terms of actor-observer discrepancy whereas John behavior is explained in terms of the fundamental attribution error.