The dynamic range of an image is defined as the ratio between the highest and the lowest luminance level. In a high dynamic range (HDR) image, this value exceeds the capabilities of conventional display devices; as a consequence, dedicated visualization techniques are required. In particular, it is possible to process an HDR image in order to reduce its dynamic range without producing a significant change in the visual sensation experienced by the observer. In this paper, we propose a dynamic range reduction algorithm that produces high-quality results with a low computational cost and a limited number of parameters. The algorithm belongs to the category of methods based upon the Retinex theory of vision and was specifically designed in order to prevent the formation of common artifacts, such as halos around the sharp edges and clipping of the highlights, that often affect methods of this kind. After a detailed analysis of the state of the art, we shall describe the method and compare the results and performance with those of two techniques recently proposed in the literature and one commercial software.