What if everyone uses voltage stabilizers?
When the demand current rises from a drop in voltage, the stabilizer increases the demand and thus causes more drop to the shared network.   

But if everyone has a stabilizer, then the distribution becomes more unstable and probably unusable. Effectively, AC stabilizers are a negative incremental resistance.

It is better to regulate the source with manual or auto-taps then ensure the rated load does not drop more than 10% voltage in each distribution.  Normally 5% for generation and 5% for distribution in well-designed networks worst-case.