This paper presents the experimental validation of an interaction-aware model predictive decision-making (IAMPDM) approach in the course of a simulator study. The proposed IAMPDM uses a model of the pedestrian, which simultaneously predicts their future trajectories and characterizes the interaction between the pedestrian and the automated vehicle. The main benefit of the proposed concept and the experiment is that the interaction between the pedestrian and the socially compliant autonomous vehicle leads to smoother traffic. Furthermore, the experiment features a novel human-in-the-decision-loop aspect, meaning that the test subjects have no expected behavior or defined sequence of their actions, better imitating real traffic scenarios. Results show that intention-aware decision-making algorithms are more effective in realistic conditions and contribute to smoother traffic flow than state-of-the-art solutions. Furthermore, the findings emphasize the crucial impact of intention-aware decision-making on autonomous vehicle performance in urban areas and the need for further research.