Are ticket touts economically efficient?

Is ticket touting evidence of the market allocating resources efficiently, or, is it a market failure?

Read: Touts threaten UK's £4.5bn music industry, survey reveals

Well, if you're a classical economist, you'd argue that selling something to the highest bidder is evidence of efficiency. 

And do we blame other people for reselling things at higher prices than they were originally sold for? That's arbitrage, and common in many markets. 

Whilst I can understand people's frustrations, the real issue is that the face value of tickets for popular sports events and concerts is invariably too low.