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I found a great paper online about Photographic Tone Reproduction for Digital Images:

A classic photographic task is the mapping of the potentially high dynamic range of real world luminances to the low dynamic range of the photographic print.

You know when you take photos on a sunny day and all the objects are too dark in the shade and too bright in the light? Too much dynamic range - it needs compression to squeeze it into a computer screen or on to a page.