Exposure fusion is based on the Burt&Adelson image splining algorithm. This 
is the algorithm used by enfuse to produce exposure fusions for hugin, and 
it's also used by lux, with roughly the same effect.
I've been looking at some of my landscape brackets recently, fused with 
this method, and some of them weren't quite how I thought they should be: 
if there were 'islands of bright content' in darker surroundings, 
highlights in these 'islands' would show near-white (overexposed) even 
though the bracket contained valid pixels for the area in question in the 
darkest exposure.
How can this be? The Burt&Adelson algorithm is pyramid-based. To form an 
image pyramid, the image is scaled down repeatedly, producing a series of 
ever-smaller images - the 'pyramid'. The scaling-down combines several 
pixels from a larger image into one pixel in the next-smaller pyramid 
level. If some of the contributing pixels are overexposed (white), their 
combination will be partly informed by the white contribution, which is not 
a correct value to calculate with. With ever smaller pyramid levels, the 
problem gets worse. When the pyramids are combined in the fusion, these 
wrong pixels eventually produce the artifacts I noticed.
Is there a remedy? I think I have figured it out: the trick is to first 
hdr-merge the bracket, and then to create a faux bracket from the HDR 
rendition. I'll describe the process using lux:

   1. create a PTO named 'stack.pto' from your bracket with 
   align_image_stack
   2. hdr-merge with lux: lux --hdr_merge=yes stack.pto
   3. create a faux bracket from the result: lux --compress=yes 
   stack.pto.lux.1.exr.lux

This simple three-step process is already pretty good, but I found a way to 
improve it further, by using a different method for HDR merging, which I 
call HDR fusion. The modified process goes like this:

   1. create a PTO named 'stack.pto' from your bracket with 
   align_image_stack
   2. hdr-fuse with lux: lux --fuse=yes --hdr_spread=1 
   --snapshot_extension=exr stack.pto
   3. faux bracket from the result: lux --compress=yes 
   stack.pto.lux.1.fused.exr.lux

Give it a try, I think the result is a fair bit better than using plain 
exposure fusion! Comments welcome.

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