In this paper we treat optimal trajectory planning for an autonomous vehicle (AV) operating in dense traffic, where vehicles closely interact with each other. To tackle this problem, we present a novel framework that couples trajectory prediction and planning in multi-agent environments, using distributed model predictive control. A demonstration of our framework is presented in simulation, employing a trajectory planner using non-linear model predictive control. We analyze performance and convergence of our framework, subject to different prediction errors. The results indicate that the obtained locally optimal solutions are improved, compared with decoupled prediction and planning.
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